IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 15 Nov 2008 | Removal date: 15 Jun 2010
Still in force

Trade finance

On 15 November 2008, the Reserve Bank of India (RBI) intervened in the Rupee export credit market (Circular RBI/2008-09/ 280). "In view of the difficulties faced by exporters on account of the weakening of external demand", it altered the conditions of a export credit promotion scheme originally implemented in 2003.
 
With its intervention, the RBI extended the period for which pre-shipment Rupee export credit can be availed from 180 days to 270 days. During this period, Indian exporters enjoy favorable financing conditions capped at the Indian Benchmark Prime Lending Rate (BPLR) minus 2.5 percentage points.

 
On 28 November 2008, in a further intervention motivated by falling demand for Indian exports, the RBI extendedthe period for which post-shipment Rupee export credit can be availed from 90 days to 180 days.
 
The stated conditions were extended repeatedly until the export credit market was eventually liberalized with 1 July 2010 (see related measure).

 

AFFECTED COUNTRIES

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