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ANNOUNCEMENT 15 Nov 2008
In November 2008, the government of India announced a change in its trade finance instruments.NUMBER OF INTERVENTIONS
1
SOURCE
24 October 2008 - Circular No. MPD.BC.307/07.01.279/2008-09
https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=4576
15 November 2008 - Circular DBOD.Dir.(Exp).BC.No.80/04.02.01/2008- 09 https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=4643
28 November 2008 Circular DBOD DBOD.Dir.(Exp).BC.No. 88/04.02.01/2008- 09 https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=4673
28 April 2009 - Circular MPD.BC.323 /07.01.279/2008-09
https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=4957
28 October 2009- Circular MPD.BC.326 /07.01.279/2009-10
https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=5331
23 April 2010 - Circular MPD.BC. 330/07.01.279/2009-10
https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=5623
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 SECTORS
AFFECTED PRODUCTS