RBI announces further measures to deal with COVID-19 pandemic

The Reserve Bank of India (RBI) on Wednesday extended realisation period of export proceeds as part of additional measures to deal with the economic disruption caused by coronavirus epidemic.

The value of the goods or software exports made by exporters is currently required to be realised fully and repatriated to the country within nine months from the date of exports.

"In view of the disruption caused by the COVID-19 pandemic, the time period for realisation and repatriation of export proceeds for exports made up to or on July 31 has been extended to 15 months from the date of export," the RBI said in a statement.

 

The measure will enable exporters to realise their receipts, especially from COVID-19 affected countries, within the extended period and also provide greater flexibility to exporters to negotiate future export contracts with buyers abroad, it added.

Besides, the central bank had constituted an advisory committee under the chairmanship of Sudhir Shrivastava to review ways and means limits for state governments and Union territories.

While awaiting its final recommendations, the RBI has increased ways and means advances limit by 30 per cent from the existing limit for all states and union territories to enable them tide over the situation arising from the outbreak of COVID-19 pandemic.

The revised limits will come into force from April 1 and remain valid till September-end.

On February 5, 2015 the RBI had issued guidelines for the framework on counter-cyclical capital buffer (CCyB) which said the CCyB will be activated when circumstances warrant and the decision will normally be pre-announced.

The framework envisages the credit-to-GDP gap as the main indicator which is used in conjunction with other supplementary indicators.

"Based on the review and empirical analysis of CCyB indicators, it has been decided that it is not necessary to activate CCyB for a period of one year or earlier, as may be necessary," said the RBI in a statement.