2. As per the extant guidelines, authorized dealers are permitted to extend Pre-shipment Credit in Foreign Currency (PCFC) to exporters for financing the purchase, processing, manufacturing or packing of goods prior to shipment at LIBOR/EURO LIBOR/EURIBOR related rates of interest.
3. In view of the impending discontinuance of LIBOR as a benchmark rate, it has been decided to permit banks to extend export credit using any other widely accepted Alternative Reference Rate in the currency concerned. All other instructions in this regard shall remain unchanged.
RBI has vide its circular dated 23rd May, 2020 here decided to increase maximum permissible period of pre shipment and post shipment export credit sanctioned by banks from one year to 15 months. Earlier they had allowed a period of 15 months for realisation and repatriation of export proceeds into India from the stipulated 9 months. This is obviously to mitigate the difficulties arising out of covid pandemic.
Surprisingly RBI has not given any leeway in filing of the form FC-GPR online which is an FDI form and which is supposed to be filed within one month of allotment, but RBI has chosen to fine companies for delay in the filing knowing well that with the covid pandemic, office functioning have been disrupted worldwide with the result that getting access to documents from the office has proven to be extremely difficult. And the form FC-GPR is a totally user unfriendly form in fact i would categorise the RBI FIRMS as the worst ever e-governance system of the government of India. The form asks for too much of documents which in the present circumstances proved very difficult to retrieve from offices which have been closed due to the covid pandemic.
Sometimes, i feel that RBI acts in a childish, amateurish fashion not realizing the problems of businesses.