Friday, July 13, 2012

RBI relaxes Export Credit Refinance Facility

The Reserve Bank of India (RBI) has decided to enhance the eligible limit of the ECR facility for
scheduled banks (excluding RRBs) from 15 per cent of the outstanding export credit eligible for refinance to 50 per cent, effective fortnight beginning June 30, 2012. This will provide additional liquidity support to banks of over 300 billion. The rate of interest charged on the ECR facility will continue to be the prevailing repo rate under the LAF, which is currently 8.0 per cent.

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