In addition, the Union Minister of Commerce and Industry and Railways Goyal proposed that credit in foreign currency be available to exporters at "London Interbank Offered Rate (LIBOR) plus maximum 200 basis points".
Goyal made the proposal at a meeting on export credit.
According to the Ministry of Commerce & Industry various public and private sector banks, RBI, EXIM bank, exporters organisations took part in it.
"The Commerce Minister pointed out that the volume of export credit is on a declining trend for the last few years and the situation needs urgent measures... and directed RBI, ECGC (Export Credit Guarantee Corporation of India) and other banks to work out the modalities to make it possible."
As per the statement, the Commerce and Industry Minister also deliberated on the interest subvention scheme utilisation with the participants and stressed on the importance of finding ways to maximise its impact.
"He suggested that the subvention scheme may be used better as backstop guarantee for credit, thus increasing the coverage of ECGC for export lending purposes," the statement said.
"The Minister asked RBI, EXIM Bank and SBI to study the matter in detail and present it in the follow up meeting to be held on June 30th 2019 in Mumbai."
Besides, RBI has been asked to look into $25 billion line of credit from its foreign currency reserves for swap to well performing banks, and to also look into priority sector lending norms for export credit.
"Concerned departments have been asked to provide details for improving gold card scheme for export credit to be submitted to RBI. All these proposals will be discussed again and finalised in the June 30 th , 2019 meeting to be held in Mumbai," the statement added.
( With inputs from IANS )