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IECD No. 18 /04.02.01/2002-03
April 30, 2003
The Chairmen/Chief Executives of
all commercial banks
Dear Sir,
Rupee Export Credit Interest Rates
Please refer to our circular IECD.No.7/04.02.01/2002-03 dated September 23, 2002 advising a reduction in the ceiling interest rates on rupee export credit by 1 percentage point across the board effective from September 26,2001 to April 30, 2003.
2. The validity of the interest rates on rupee export credit effective from September 26, 2001 would now remain in force upto October 31,2003. In this connection, you may please refer to circular No.MPD.BC.236/07.01.279/2003-04 dated April 30, 2003. The rates of interest applicable have been incorporated in the Annexure to the Directive DBOD No.BC.103/13.07.01/2003 dated April 30, 2003 enclosed to this circular.
3. Please acknowledge receipt.
Yours faithfully,
(Smt.R.K.Makhija)
Chief General Manager
Encls : as above
Interest Rates on Advances
DIRECTIVE DBOD.No.BC.103 /13.07.01/2003
April 30, 2003
Interest Rates on Advances
In exercise of the powers conferred by Sections 21 and 35A of the Banking Regulation Act 1949, the Reserve Bank of India, being satisfied that it is necessary and expedient in the public interest so to do, hereby directs that with effect from May 1,2003 the interest rates on rupee export credit would be as indicated in the Annexure enclosed to this Directive.
(Y.S.P.Thorat)
Executive Director
Encl : as above
ANNEXURE
Interest Rates on Rupee Export Credit of
Scheduled Commercial Banks
(Per cent per annum)
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Categories of export credit |
Interest Rates @ |
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Existing upto
April 30, 2003) |
Effective from May 1, 2003 toOctober31, 2003 |
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1. Pre-Shipment Credit |
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i) Upto 180 days |
Not exceeding PLR minus 2.5 percentage points |
Not exceeding PLR minus 2.5 percentage points |
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ii) Beyond 180 days and
upto 270 days |
Not exceeding PLR plus 0.5 percentage points |
Free* |
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b) Against incentives receivable from Government covered by ECGC guarantee upto 90 days
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Not exceeding PLR minus 2.5 percentage points |
Not exceeding PLR minus 2.5 percentage points |
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2. Post-Shipment Credit |
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a) On demand bills for transit period (as specified by FEDAI)
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Not exceeding PLR minus 2.5 percentage points |
Not exceeding PLR minus 2.5 percentage points |
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b) Usance Bills (for total period comprising usance period of export bills, transit period as specified by FEDAI and grace period wherever applicable)
i) Upto 90 days
ii) Beyond 90 days and upto 6 months from the date of shipment |
Not exceeding PLR minus 2.5 percentage points
Not exceeding PLR plus 0.5 percentage points
|
Not exceeding PLR minus 2.5 percentage points
Free*
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c) Against incentives receivable from Government covered by ECGC guarantee upto 90 days |
Not exceeding PLR minus 2.5 percentage points |
Not exceeding PLR minus 2.5 percentage points |
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d) Against undrawn balances (upto 90 days) |
Not exceeding PLR minus 2.5 percentage points |
Not exceeding PLR minus 2.5 percentage points |
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e) Against retention money (for supplies portion only) payable within one year from the date of shipment (upto 90 days) |
Not exceeding PLR minus 2.5 percentage points |
Not exceeding PLR minus 2.5 percentage points |
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3. Deferred Credit |
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Deferred credit for the period beyond 180 days |
Free* |
Free* |
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4. Export Credit Not Otherwise
specified(ECNOS) |
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a) Pre-shipment credit |
Free* |
Free* |
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b) Post-shipment credit |
Free* |
Free* |
@ Note : Since these are ceiling rates, banks would be free to charge any rate below the ceiling rates.
*Free : The banks are free to decide the rate of interest to be charged, keeping in view the PLR and spread guidelines.
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