RBI/2008-09/ 326
DBOD.Dir.(Exp).BC.No. 101 /04.02.01/2008-09
December 16, 2008
All Scheduled Commercial Banks
(excluding RRBs)
Dear Sirs,
Rupee Export Credit Interest Rates
The Government of India has decided to extend Interest Subvention of 2
percentage points w.e.f. December 1, 2008 till March 31, 2009 on pre and post
shipment rupee export credit, for certain employment oriented export sectors as
under:
- Textiles (including Handloom)
- Handicrafts
- Carpets
- Leather
- Gems and Jewellery
- Marine Products, and
- Small & Medium Enterprises (as defined in the Annex)
- As per the existing guidelines, banks charge interest rate not exceeding BPLR
minus 2.5 percentage points on rupee pre-shipment credit up to 270 days and
post-shipment credit up to 180 days. Banks will now charge interest rate not
exceeding BPLR minus 4.5 percentage points on pre-shipment credit up to 270 days
and post-shipment credit up to 180 days on the outstanding amount for the period
December 1, 2008 to March 31, 2009 to the above mentioned sectors. However, the
total subvention will be subject to the condition that the interest rate, after
subvention will not fall below 7 per cent which is the rate applicable to the
agriculture sector under priority sector lending. The banks may ensure that the
benefit of the 2 per cent interest subvention is passed on completely to the
eligible exporters.
- A directive No.
DBOD.Dir.(Exp).BC.No.100 /04.02.01/2008-09 dated December 16,
2008 issued in this regard is enclosed.
- In respect of other categories of exporters, the provisions of the circulars
dated November 15, 2008 and November 28, 2008, would continue to apply.
- The procedure for claiming subvention is as follows:
- The amount of subvention would be reimbursed on the basis of claim submitted
as at March 31, 2009 in the format enclosed.
- The amount of subvention will be calculated on the amount of export credit
from the date of disbursement up to the date of repayment or up to the date
beyond which the outstanding export credit becomes overdue i.e. for pre-shipment
credit up to 270 days and post-shipment credit up to 180 days, whichever is
earlier.
- The claims should be accompanied by an Auditor's Certificate certifying
that the claims for subvention of Rs…………….for the period December 1, 2008 to
March 31, 2009, as true and correct. Settlement of the claim will be done only
on receipt of this certificate.
- Claims may be submitted to the Chief General Manager, Department of Banking
Operations and Development, Reserve Bank of India, Central Office, World Trade
Centre, Mumbai-400 005.
Yours faithfully,
(P.Vijaya Bhaskar)
Chief General Manager
DBOD.Dir.(Exp).BC.No. 100 /04.02.01/2008-09
December 16, 2008
Interest Rates on Rupee Export Credit
In exercise of the powers conferred by Sections 21 and 35 A 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 December 1, 2008 to March 31, 2009 the interest rates on pre
and post shipment credit to the specified export sectors mentioned below would
be as indicated below.
As per the existing guidelines, banks charge interest rates not exceeding BPLR
minus 2.5% on pre-shipment credit up to 270 days and post-shipment credit up to
180 days. Banks will now charge interest rates not exceeding BPLR minus 4.5% on
pre-shipment credit up to 270 days and post-shipment credit up to 180 days on
the outstanding amount for the period December 1, 2008 to March 31, 2009 to the
exporters in the sectors mentioned below.
(i) Textiles (including Handloom)
(ii) Handicrafts
(iii) Carpets
(iv) Leather
(v) Gems and Jewellery
(vi) Marine Products, and
(vii) Small & Medium Enterprises (as defined in the
Annex)
In respect of other categories of exporters, the provisions of the circulars
dated November 15, 2008 and November 28, 2008, would continue to apply.
(Anand Sinha)
Executive Director
Rupee Export Credit for the period from December 1, 2008 to March 31, 2009
| Category of Exporters |
Total Rupee export credit
granted at BPLR minus 4.5%
|
Amount of Subvention Claimed |
| (1) |
(2) |
(3) |
(i) Textiles (including Handloom)
(ii) Handicrafts
(iii) Carpets
(iv) Leather
(v) Gems and Jewellery
(vi)Marine Products, and
(vii) Small & Medium Enterprises
(as defined in the Annex) |
|
|
| Total |
|
|
NB : Amount of subvention should be rounded off to the nearest rupee.
We certify having disbursed the above loans at BPLR minus 4.5% p.a. by way of
Rupee export credit to the eligible exporters as stated in the RBI circular
No.DBOD.Dir.(Exp).BC.No. 101 /04.02.01/2008-09 dated December 16, 2007 during
the period December 1, 2008 to March 31, 2009.
Dated : _________________
Authorised Signatory
Annex
Definition of SME
Enterprises engaged in the manufacture or production, processing or preservation
of goods as specified below:
- A micro enterprise is an enterprise where investment in plant and machinery
(original cost excluding land and building and the items specified by the
Ministry of Small Scale Industries vide its notification No.S.O.1722(E) dated
October 5, 2006 does not exceed Rs.25 lakh;
- A small enterprise is an enterprise where the investment in plant and
machinery (original cost excluding land and building and the items specified by
the Ministry of Small Scale Industries vide its notification No. S.O.1722(E)
dated October 5, 2006) is more than Rs.25 lakh but does not exceed Rs.5 crore;
and
- A medium enterprise is an enterprise where the investment in plant and
machinery (original cost excluding land and building and the items specified by
the Ministry of Small Scale Industries vide its notification No. S.O.1722(E)
dated October 5, 2006) is more than Rs.5 crore but does not exceed Rs.10 crore.