May 22, 2020
Coimbatore : Indian Texpreneurs Fedefation (ITF) Friday thanked RBI for extension of loan moratorium to 6 months, which will help textile industries to “manage the cash flow towards re-starting the business”.
Conversion of deferred interest as one year team loan also will help the companies to “manage the liquidity and speed up the revival process” because every rupee is important now to streamline post COVID business operations, ITF Convener Prabhu Dhamodaran said in a statement here.
Stating that the industry expected the same level of Repo rate reduction, he said that with this announcement, RBI has sent its signals very early and now our entire “energy should be on talking with banks to get the practical benefit of all rate cuts”.
Prabhu thanked the Finance Ministry and RBI for the timely interventions, even as RBI governor had mentioned about the “vigilance and battle readiness of RBI, which are giving confidence” to industry players like us about
the future and timely interventions by RBI.
Meanwhile, Tirupur Exporters Association (TEA) thanked RBI for reduction of the policy repo rate by 40 basis points (0.4 per cent) from 4.40 to 4 per cent with immediate effect and said that was the second reduction RBI has done, after reducing from 5.15 per cent to 4.40 per cent on March 27 during COVID-19 environment.
Thanking RBI for the measures announced to improve the functioning of markets, TEA President, Raja M Shanmugham hailed the decision to increase the maximum permissible period of pre-shipment and post-shipment export credit
sanctioned by banks from the existing one year to 15 months, for disbursements made up to July 31, as this measure is beneficial to Tirupur knitwear garmenting units, as they have resumed the operations and functioning partially from the second week of May only.
In the import front also, RBI has decided to extend the time period for completion of outward remittances against normal imports into India from six months to twelve months from the date of shipment for such imports made on or before July 31, which will be helpful for the Specialty Fabric and Machinery importers, he said.