Covid-19: RBI announces relief for exporters, gives breather to states/UTs

It would help the exporters to realise their receipts from nations adversely affected by the virus and also negotiate future export deals

After slashing lending rates significantly and providing relief in payment of EMIs, the Reserve Bank of India announced another set of measures on Wednesday to deal with the impact of novel coronavirus (Covid-19) pandemic on the Indian economy.

RBI extended the realisation period of exports proceeds from nine months to 15 months for exports made up to or on July 31, 2020. This would help the exporters to realise their receipts from nations adversely affected by the virus and also negotiate future export deals. 

In another move, RBI constituted an advisory committee under the chairmanship of Sudhir Shrivastava to review the ways and means limits for states and Union territories. For now, the ways and means limit has been increased by 30 per cent for the states and union territories to deal with the situation arising due to Covid-19. This new limit comes into force from April 1, 2020 and will stay till September 30, 2020. 

The RBI decided not to activate the counter-cyclical capital buffer for a year, or earlier as necessary.