E. Standing Liquidity Facility
This facility is provided to scheduled commercial banks and also primary dealers (PDs) by the Reserve Bank of India.
RBI lends funds to banks who have extended rupee loans to exporters for pre and post shipment under the scheme of export credit refinance facility.
On fortnightly basis, banks provide information about export credit provided to exporters and can borrow or refinance 50% of the outstanding credit amount at the prevailing repo rate. The tenure of the refinancing is up to 180 days.
The Export Credit Refinance Facility was thus started by RBI to promote exports.