Indian Texpreneurs Federation (ITF) recently thanked the RBI for extending loan moratorium to six months which would help textile industries manage cash flow towards re-starting businesses during the post-COVID-19 times.
According to ITF, the conversion of deferred interest as a one-year term loan would also help the companies manage the liquidity and speed up the revival process because every rupee is important now to streamline post-COVID business operations.
This was the second reduction RBI has done after reducing from 5.15 per cent to 4.40 per cent on March 27 during the COVID-19 environment.
Meanwhile, Tirupur Exporters Association (TEA) also thanked RBI for reduction of the policy repo rate by 40 basis points (0.4 per cent) from 4.40 per cent to 4 per cent with immediate effect. 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 upto July 31.
He said this measure is beneficial to Tirupur knitwear garmenting units, as they have resumed operations and functioning partially from the second week of May. On the import front too, the RBI has decided to extend the time for completion of outward remittances against normal imports into India from six months to 12 months from the date of shipment for such imports made on or before July 31, which would be helpful for the specialty fabric and machine importers.