Pre-shipment and Post-shipment Export Credit Sanctioned by Banks from One Year to 15 Months, for Disbursements made upto 31 July 2020

[DOR.DIR.BC.No.73/04.02.002/2019-20 dated 23rd May 2020]

Sub: Pre-shipment and Post-shipment Export Credit – Extension of Period of Advance

Please refer to the Master Circular on ‘Rupee / Foreign Currency Export Credit and Customer Service to Exporters’ issued vide DBR.No.DIR.BC.14/04.02.002/2015-16 dated July 1, 2015 and other associated circulars on the subject.

2. In view of the outbreak of Covid-19 pandemic, the exporters have been facing genuine difficulties such as delay / postponement of orders, delay in realisation of bills, etc. In this regard, RBI has already permitted the period of realisation and repatriation of the export proceeds to India to be increased from nine months to 15 months from the date of export in respect of exports made upto July 31, 2020. In line with this relaxation, it has been decided to increase the maximum permissible period of pre-shipment and post-shipment export credit sanctioned by banks from one year to 15 months, for disbursements made upto July 31, 2020.