Extension of realisation period of export proceeds and allowing States to borrow more
The Reserve Bank of India has announced more measures to fight economic disruptions caused by the Coronavirus, like extension of realisation period of export proceeds and allowing States to borrow more.
“Presently value of the goods or software exports made by the exporters is required to be realized fully and repatriated to the country within a period of 9 months from the date of exports. In view of the disruption caused by the COVID-19 pandemic, the time period for realization and repatriation of export proceeds for exports made up to or on July 31, 2020, has been extended to 15 months from the date of export,” RBI said.
The measure will enable the exporters to realise their receipts, especially from COVID-19-affected countries within the extended period and also provide greater flexibility to the exporters to negotiate future export contracts with buyers abroad.
The central bank has also formed an advisory committee to review ways and means limit for State governments and Union Territories.
“Pending submission of the final recommendations by the Committee, it has been decided to increase WMA limit by 30% from the existing limit for all States/UTs to enable the State Governments to tide over the situation arising from the outbreak of the COVID-19 pandemic. The revised limits will come into force with effect from April 1, 2020 and will be valid till September 30, 2020,” RBI said.
Source: The Hindu