Banks were encouraged to use this facility for the purpose of extending finance to micro and small enterprises. The eligible limit of the ECR facility for scheduled banks (excluding RRBs) was also increased from 15 per cent to 50 per cent of the outstanding export credit eligible for refinance at the prevailing repo rate under the LAF.
I am confident that both sides have apparently recognised the importance of a transition phase in making Brexit less abrupt and, in the long run, less painful. Despite all this positive news, it is still too early to lay back. Many issues are still to be discussed and the transitional period is still not fully guaranteed.