Why in the News?
The Reserve Bank of India (RBI) has extended export realisation timelines and credit facilities due to geopolitical tensions in West Asia and global supply chain disruptions affecting Indian exporters.
What is Export Realisation?
Export realisation refers to:
- Receiving payment for exported goods/services
- Exporters must bring foreign currency earnings back to India within RBI timeline
Export Realisation Timeline Extended
- Earlier timeline: 9 months
- Extended to: 15 months
- Applies to:
- Goods exports
- Software exports
- Services exports
- This relaxation continues due to ongoing global disruptions.
Export Credit Period Extended
- Export credit period: 450 days
- Earlier validity: Up to March 31, 2026
- Now extended to: June 30, 2026
- Applies to: Pre-shipment credit and Post-shipment credit
| [2019] Which one of the following is not the most likely measure the Government/ RBI takes to stop the slide of Indian rupee? (a) Curbing imports of non-essential goods and promoting exports. (b) Encouraging Indian borrowers to issue rupee denominated Masala Bonds. (c) Easing conditions relating to external commercial borrowing. (d) Following an expansionary monetary policy. |
