RBI has notified extension of Period of Advance from 12 months to 15 months in the case of all Pre/ Post Shipment Export Credits disbursed upto 31 July 2020, in view of the genuine difficulties being faced by exporters due to COVID-19, such as delay/ postponement of orders, delay in realisation of bills, etc.
RBI extends Pre/ Post Shipment Export Credit/ Advance Period from 12 to 15 Months: Notification dt. 23 May 2020
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.