GJEPC urges RBI to make special announcement for relaxing the interest rates and margins applicable on export finance

The Gem & Jewellery Export Promotion Council (GJEPC) has urged the Reserve Bank of India (RBI) governor to make special announcements for relaxing the interest rates and margins applicable on export finance, provide interest subvention in this situation across all sectors for traders and manufacturers up to 5% and permit extension of packing credits and export bills for a period of 90 to 180 days depending on business cycle of the industry without impacting the status of the account.

Colin Shah, vice-chairman, GJEPC said "We thank the RBI governor for reducing the statutory ratios and in fusing the much needed liquidity immediately into the system. "However,as an export fraternity and gravely impacted due to closure of global trade definitely look for special relief for the exporting and importing community," Shah said.

He also said that reassessment of facility to tide over the situation will take time and consortium account will take more time. Therefore this injection of additional funding to be given by the banks should be within 7 days of application. "Only then will it help. If they take 90 days then the whole purpose is defeated," he said.