RBI/2009-10/453
DBOD.Dir.(Exp).BC.No. 102 /04.02.001/2009-10
May 6, 2010
All Scheduled Commercial Banks
(excluding RRBs)
Dear Sir/Madam,
Rupee Export Credit Interest Rates
Please refer to our circular DBOD.Dir.(Exp).BC.No. 54/ 04.02.01/2009-10 dated
October 29, 2009 on the captioned subject.
- The validity of the prescribed interest rate ceiling on pre-shipment rupee
export credit upto 270 days and post-shipment rupee export credit upto 180 days
stipulated at BPLR minus 2.5 percentage points as stated in our above mentioned
circular DBOD.Dir.(Exp).BC.No.54/04.02.001/2009-10 dated October 29, 2009 would
now remain in force upto June 30, 2010. In this connection, you may please refer
to RBI circular No.MPD.BC.330/07.01.279/2009-10 dated April 23, 2010. The rates
of interest applicable have been incorporated in the Annexure to the Directive
DBOD.Dir(Exp).BC.No. 101/04.02.01/2009-10 dated May 6, 2010 enclosed to this
circular.
- The Base Rate System will be applicable with effect from July 1, 2010.
Accordingly, interest rates applicable for all tenors of rupee export credit
advances will be at or above Base Rate.
Yours faithfully,
(A.K.Khound)
Chief General Manager
Encl: as above
DBOD.Dir.(Exp).BC.No. 101 /04.02.001/2009-10
May 6, 2010
Interest Rates on Advances
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 May 01, 2010 to June 30, 2010, the interest rates on rupee
export credit would be as indicated in the Annex enclosed to this Directive.
2. Interest rates applicable for all tenors of rupee export credit advances with
effect from July 1, 2010 will be at or above Base Rate.
(Anand Sinha)
Executive Director
ANNEX
Interest Rates on Rupee Export Credit of
Scheduled Commercial Banks
Interest Rates effective from May 01, 2010 to June 30, 2010 will be not
exceeding BPLR minus 2.5 percentage points per annum for the following
categories of Export Credit.
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Categories of Export Credit
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1.
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Pre-shipment Credit
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(a) Up to 270 days
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(b)Against incentives receivable from
Government covered by ECGC Guarantee up to
90 days
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2.
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Post-shipment Credit
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(a) On demand bills for transit period
(as specified by FEDAI)
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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)
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i) Up
to 180 days
ii) Up to 365 days for exporters under the Gold
Card Scheme. |
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(c) Against incentives receivable from Govt.
(covered by ECGC Guarantee) up to 90 days
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(d) Against undrawn balances (up to 90
days)
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(e) Against retention money (for
supplies portion only) payable within one year
from the date of shipment (up to 90 days)
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BPLR: Benchmark Prime Lending
Rate
Note: 1. Since these are
ceiling rates, banks would be free to charge any
rate below the ceiling rates.
2. Interest rates for the
above-mentioned categories of export credit
beyond the tenors as prescribed above are
deregulated and banks are free to decide the
rate of interest, keeping in view the BPLR and
spread guidelines.
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