RBI should ease regulations for shipment credit

Many exporters do not find it practical to send the export documents through the banks because of the extra costs and delays involved

In a welcome move, the government has extended the Interest Equalization Scheme for Pre- and Post-Shipment Rupee Export Credit, with the same scope and coverage, till the end of September 2021. Consequently, the extant ope­rational instructions on the scheme issued by the Reserve Bank of India (RBI) will continue till then. The RBI, however, needs to resolve a related issue that exporters face.
 
The RBI Master Circular on rupee/foreign currency export credit and customer service to exporters says that the packing credit/pre-shipment credit granted to an exporter may be liquidated out of proceeds of bills drawn for the exported