RBI/2009-10/426
DBOD.Dir.(Exp).BC.No.94/04.02.001/2009-10
April 23, 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.26 /04.02.001/2009-10 dated
July 31, 2009. In this connection, the Government of India has decided to extend
Interest Subvention of 2 percentage points w.e.f. April 1, 2010 to March 31,
2011 on pre and post shipment rupee credit, for certain employment oriented
export sectors as under:
1. Handicrafts
2. Carpets
3. Handlooms
4. Small & Medium Enterprises (SME) (as defined in the Annex)
2. 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
April 1, 2010 to March 31, 2011 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.
3. A directive No. DBOD.Dir.(Exp).BC.No.93/04.02.01/2009-10 dated April 23, 2010
issued in this regard is enclosed.
4. In respect of other categories of exporters, the provisions of the circular
DBOD.Dir.(Exp).BC.No.54/04.02.001/2009-10 dated October 29, 2009, would continue
to apply.
5. The procedure for claiming subvention is as follows:
i) The amount of subvention would be reimbursed on the basis of claim submitted
as at the end of respective quarters in the format enclosed.
ii) The amount of subvention will be calculated on the amount of export credit
from the date of disbursement
a. up to the date of repayment; or
b. up to the date beyond which the outstanding export credit becomes overdue; or
c. for pre-shipment credit up to 270 days and post-shipment credit up to 180
days,
whichever is earlier.
iii) The claims should be accompanied by an External Auditor's Certificate
certifying that the claims for subvention of Rs…………….for the respective quarter
is true and correct. Settlement of the claim will be done only on receipt of
this certificate.
iv) Claims may be submitted in the enclosed format to the Chief General
Manager-in-Charge, 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-in-Charge
Encl: as above
Rupee Export Credit for the period from April 1, 2010 to March 31, 2011
Claim for the quarter ended...............
...
|
Category of Exporters
|
Total Rupee export credit granted at interest
rates not exceeding BPLR minus 4.5%
|
Amount of subvention claimed (rounded off
to the nearest rupee)
|
|
(1)
|
(2)
|
(3)
|
- Handicrafts
- Carpets
- Handlooms
- Small & Medium Enterprises (SME)*
|
|
|
|
Total
|
|
|
|
*As defined in the
Annex.
|
We certify having charged interest rates on the above loans within the
ceiling of 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.94/04.02.001/2009-10
dated April 22, 2010 during the period ............ to ...............
Dated : _________________
(Name and stamp of
Authorised Signatory)
ANNEX
Definition of SME
Enterprises engaged in the manufacture or production, processing or preservation
of goods as specified below:
i) 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;
ii) 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
iii) 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
DBOD.Dir.(Exp).BC.No.93 /04.02.001/2009-10
April 23, 2010
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 April 1, 2010 to March 31, 2011 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 April 1, 2010 to March 31, 2011 to the
exporters in the sectors mentioned below.
1. Handicrafts
2. Carpets
3. Handlooms
4. Small & Medium Enterprises (SME) (as defined in the Annex)
In respect of other categories of exporters, the provisions of the circular
DBOD.Dir.(Exp).BC.No.54/04.02.001/2009-10 dated October 29, 2009 would continue
to apply.
(Anand Sinha)
Executive Director