Steps to increase credit flow
Impact on Exports due To Decline in Export Credit Government has taken Major steps for MSMEs As per data compiled by RBI, the balance outstanding for export credit by all Scheduled Commercial Banks (SCBs) increased from Rs 1,85,591 crore as on 31.3.2015 to Rs 2,43,890 crore as on 31.3.2018 before declining to Rs 2,26,363 crore as on 31.3.2019. Government has taken following major steps to increase the flow of credit to micro, small and medium enterprises (MSME) exporters: (i) Raising interest equalization rate under Interest Equalisation Scheme (IES) from 3% to 5% for MSME exports, (ii) Including Merchant exporters under IES for Pre and Post Shipment Rupee Export Credit, (iii) facilitating export under GST by permitting Letter of Undertaking in place of bond with no bank guarantee for exporting goods or services or both, (iv) Allowing merchant exporters to procure goods from domestic suppliers, for export, with nominal GST of 0.1%, (v) Provisional sanct...