Increasing the time of Outward remittance from 6 months to 12 months, will
surely help the Exporters as they will have the longer payment time. The loan
moratorium increase from 3 months to 6 months is a very welcome move allowing
an exporter with wider window to manage financial conditions better.
The measures will ease the pressure from borrower of one-time accumulated
payment by increasing the payback
Chairman Trade Promotion Council of India Mohit Singla was commenting on
the announcements made by the RBI governor on May 22 nd
The financially stressed exporters will benefit from unforeseen
circumstances beyond control, on account of importers inability to pay within 6
months and thus causing offence in India. .
RBI measures like the
swap facility for Exim banks etc will solve the working capital woes for the traders
to a considerable extent
Further, Mr.Singla said, “Extending the swap facility for Exim banks,
extension of import payments from 6 month to 12 month and increasing the
exporters' length of credit to 15 months from one year are the much needed
steps which will solve the working capital woes for the traders to a
considerable extent. The measure will ease the pressure of making immediate
The Monetary Policy Committee (MPC) decision to reduce the policy repo rate
under the liquidity adjustment facility (LAF) by 40 bps to 4.0 per cent from
4.40 per cent will result in smooth liquidity for short term and will help in
keeping consumer price regulated, Singla added.