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RBI eases credit rules for exports

Exporters can now get long-term loans for up to 10 years as opposed to 1 year earlier

BS Reporter  |  Mumbai 

The Reserve Bank of India (RBI) has simplified the rules for credit to They can now get long-term advance from for up to 10 years to service their contracts, easing the previous norms that only allowed on loans above one year.

can make such payments to with a satisfactory record of three years and adjust these payments against future exports.

“This measure will help get into long-term contracts. It will help the overall export performance and help the rupee in the short to medium term,” said N S Venkatesh, executive director and head of treasury at IDBI Bank.

"This move will help boost our exports,” said Rupa Rege Nitsure, chief economist, Bank of Baroda.

also said cannot charge interest rates exceeding 200 basis points above the London Interbank Offer Rate. Banks should ensure compliance with anti-money laundering norms and know your customer guidelines.

According to such shall not be permitted to be used to liquidate Double financing for working capital and execution of export orders should be avoided.

Also exporters who receive loans of $100 million or above need to report the transaction immediately to

First Published: Thu, May 22 2014. 00:25 IST