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RBI Announces More Measures to Fight Economic Disruptions amid Covid-19

Tooba Maher
Tooba Maher

The Reserve Bank of India (RBI) has declared more measures to fight economic disruptions due to the covid-19. Some of its measure includes extension of realisation period of export proceeds and allowing States to borrow more.

According to RBI, "At present value of the goods or software exports made by the exporters is required to be realized fully & repatriated to the country within a period of 9 months from the date of exports. In view of the disruption amid the coronavirus 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."

These measures will enable the exporters to realise their receipts, especially from coronavirus affected countries within the extended period. It will also provide more flexibility to the exporters to negotiate future export contracts with buyers abroad.

The central bank has also made an advisory committee to review ways & means limit for State governments and UT’s.

RBI further added, "Pending submission of the final recommendations by the Committee, it has been decided to increase WMA limit by 30 percent 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 outbreak. The revised limits will come into force with effect from April 1, 2020 & will be valid till September 30, 2020."

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