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Circular regarding Relaxation of Export Credit Refinance Facility - RBI

Relaxation about Export Credit Refinance Facility provided to exporters by Reserve Bank of India. Reserve Bank of India issued a circular regarding this. See the Following:

RBI/2011-12/603
Ref. MPD. No. 355/07.01.279/2011-12
Jyestha 28,1934 (Saka)
June 18, 2012

To
All Scheduled Banks [excluding Regional Rural Banks (RRBs)]

Dear Sir/Madam,

Export Credit Refinance Facility (ECR): Relaxation

At present, the Export Credit Refinance (ECR) limit is fixed at 15 per cent of the outstanding rupee export credit eligible for refinance as at the end of the second preceding fortnight.

With a view to enhancing the credit flow to the export sector, it has been decided to enhance the eligible limit of the ECR facility for scheduled banks (excluding RRBs) from 15 per cent of the outstanding export credit eligible for refinance to 50 per cent, effective fortnight beginning June 30, 2012. This will provide additional liquidity support to banks of over `300 billion. The rate of interest charged on the ECR facility will continue to be the prevailing repo rate under the LAF, which is currently 8.0 per cent.

Yours faithfully,
(Janak Raj)
Adviser-in-Charge

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