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Rupee Export Credit Interest Rates
Please refer to circular MPD/BC.209/07.01.279/2001-02 dated September 24, 2001.
2. On consideration of special circumstances, arising out of the recent global developments and its consequent implications for Indian trade it has been decided to effect a reduction in the ceiling interest rates on rupee export credit by 1 percentage point across the board effective from September 26, 2001 to March 31,2002. Thereafter, status quo ante will be restored automatically. The revised rates of interest alongwith the existing rates applicable upto September 25,2001 have been incorporated in the Annexure to the Directive DBOD.NO.BC/28/13.07.01/2001 dated September 24,2001 enclosed with this circular.
3. The revision in the interest rates would be applicable not only to fresh advances but also to the existing advances for the remaining period.
4. Please acknowledge receipt.
DIRECTIVE DBOD. No. BC. 28/13.07.01/2001 dated 24th September 2001
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 September 26, 2001 the interest rates on rupee export credit be changed as indicated in the Annexure enclosed to this Directive.
ANNEXURE
Interest Rates on Rupee Export Credit of Scheduled Commercial Banks
(Per cent per annum)
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Categories of export credit
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Interest Rates @ |
Categories of export credit |
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Existing upto
September 25,2001) |
Revised (with effect from Sept. 26,2001 to March 31,2002 |
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1. Pre-Shipment Credit |
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a) i) Upto 180 days |
Not exceeding PLR minus 1.5 percentage points |
Not exceeding PLR minus 2.5 percentage points |
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ii) Beyond 180 days and 270 days |
Not exceeding PLR plus 1.5 percentage points |
Not exceeding PLR plus 0.5 percentage points |
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b) Against incentives receivable from Government covered by ECGC guarantee upto 90 days |
Not exceeding PLR minus 1.5 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) |
Not exceeding PLR minus 1.5 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 1.5 percentage points
Not exceeding PLR plus 1.5 percentage points |
Not exceeding PLR minus 2.5 percentage points
Not exceeding PLR plus 0.5 percentage points |
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c) Against incentives receivable from Government covered by ECGC guarantee upto 90 days |
Not exceeding PLR minus 1.5 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 1.5 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 1.5 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* |
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