There are various functions of the Reserve Bank of India. Besides, other important functions the Reserve Bank of India plays the role of Monetary Authority and Manager of Foreign Exchange. As the Monetary Authority aims to maintain price stability and ensure adequate flow of credit to productive sectors and being the Manager of Foreign Exchange, it seeks to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India. In India exports have played a major role in accelerating the economic growth of the country. The initiatives taken by Reserve Bank of India and Government of India have contributed to the impressive increase in our exports. Export Credit is an important factor which helps exporters in executing their export orders efficiently. Export finance is granted in rupees as well as in foreign currency. The RBI has taken some measures to enable timely and hassle free flow of credit to the export sector which includes rationalization and liberalization of export credit interest rates, flexibility in repayment/prepayment of pre-shipment credit, special financial package for large value exporters, export finance for agricultural exports, Gold Card Scheme for exporters etc. The RBI has granted freedom to the Banks to get funds from abroad without any limit for exclusively for the purpose of granting export credit in foreign currency. This has enabled banks to increase their lending capacity under export credit in foreign currency.
