Mumbai, Nov. 15 In view of the difficulties being faced by exporters on account of the weakening of external demand, the RBI has decided to extend the period of entitlement of the first slab of pre-shipment rupee export credit, currently available at a concessional interest rate ceiling of the benchmark prime lending rate minus 2.5 percentage points from 180 days to 270 days with immediate effect.
Banks will get an additional liquidity support to the tune of about Rs 22,000 crore as the eligible limits of scheduled banks (excluding RRBs) under the export credit refinance (ECR) facility has been enhanced to 50 per cent of the outstanding export credit eligible for refinance. The rate of interest charged on the ECR facility will continue to be the prevailing repo rate of 7.5 per cent. Allocations Taking into account the need to ensure the growth momentum in the employment-intensive sectors of micro and small enterprises and housing, the RBI has decided to immediately allocate amounts, in advance, from scheduled commercial banks for contribution to the Small Industries Development Bank of India (SIDBI) and the National Housing Bank (NHB) to the extent of Rs 2,000 crore and Rs 1,000 crore, respectively, against banks' estimated shortfall in priority sector lending in March 2009. The allocation now made in respect of SIDBI and NHB will be adjusted against the banks' actual achievement of the target/sub targets for priority sector lending as at the end of March 2009. The bank-wise allocations would be notified separately. provisioning In view of the current macroeconomic, monetary and credit conditions, RBI said the provisioning requirements for all types of standard assets will stand reduced to a uniform level of 0.40 per cent except in the case of direct advances to agricultural and SME sector which shall continue to attract provisioning of 0.25 per cent. The revised norms will be effective prospectively, but the provisions held at present should not be reversed. http://www.thehindubusinessline.com/2008/11/16/stories/2008111651170300.htm The only use of an obstacle is to be overcome. All that an obstacle does with brave men is, not to frighten them, but to challenge them. --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
