Export Credit extended!
Export
Credit extended by Scheduled Commercial Banks has continued to reflect a steady
increase. As per data compiled by the Reserve Bank of India (RBI), the Export
Credit – Balance Outstanding in respect of all Scheduled Commercial Banks at
the end of financial year 2016-17 & 2017-18 stood at Rs. 2,43,505 Crore and
Rs. 2,43,890 Crore respectively.
It
declined marginally by 0.56% to Rs. 2,42,523 Crore in the First Quarter of
Current Financial Year before registering an increase of 4.59% to Rs. 2,53,676
Crore in Second Quarter ending Sept. 30th, 2018.
Federation
of Indian Export Organisation (FIEO) has urged the Government to increase the
flow of credit to Micro, Small & Medium Enterprise (MSME) exporters.
Government has taken various steps in this regard. These, inter-alia, include
raising interest equalization rate under Interest Equalisation Scheme (IES)
from 3% to 5% for MSME exports.
That
including Merchant exporters under IES for Pre and Post Shipment Rupee Export
Credit; facilitating export under GST by permitting Letter of Undertaking in
place of bond with no bank guarantee for exporting goods or service or both;
allowing Merchant exporters to procure goods, from domestic suppliers, for
export, with nominal GST of 0.1%; Provisional sanction of 90% refund amount
within 7 days in case of exports etc.
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