RBI/2009-10/511
DBOD.Dir.(Exp).BC.No. 115 /04.02.001/2009-10
June 29 , 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.94/04.02.001/2009-10 dated
April 23, 2010, extending the scheme of Interest Subvention of 2 percentage
points from April 1, 2010 to March 31, 2011 on pre and post shipment rupee
export credit for four export sectors viz. Handicrafts, Carpets, Handlooms and
Small & Medium Enterprises (SME), subject to the condition that banks will
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 these
sectors. However, the total subvention is subject to the condition that the
interest rate, after subvention will not fall below 7 per cent, which is the
rate applicable to the short term crop loan under priority sector lending.
- However, with the change over to the Base Rate System, the interest
rates applicable for all tenors of rupee export credit advances with effect
from July 1, 2010 will be at or above Base Rate in respect of all
fresh/renewed advances as advised vide our circular DBOD.Dir.(Exp).BC.No.102/04.02.001/2009-10
dated May 6, 2010. Accordingly, banks may reduce the interest rate
chargeable to the exporters as per the Base Rate System in the above
mentioned sectors by the amount of subvention available. If, as a
consequence, the interest rate charged to exporters goes below the Base
Rate, such lending will not be construed to be violative of the Base Rate
guidelines.
- All other terms and conditions of our circular dated April 23, 2010
mentioned above remain the same.
Yours faithfully,
(A. K. Khound)
Chief General Manager
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DBOD.Dir.(Exp).BC.No. 114/04.02.001/2009-10
June 29, 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 July 1, 2010 to March 31, 2011 the interest rates on pre and
post shipment credit to the specified export sectors as indicated below:
With the change over to the Base Rate System, the interest rate applicable to
all tenors of rupee export credit advances with effect from July 1, 2010 will be
at or above Base Rate in respect of all fresh/renewed advances. Accordingly,
banks may reduce the interest rate chargeable to the exporters as per Base Rate
system in the following sectors eligible for export credit subvention by the
amount of subvention available under the scheme subject to a floor rate of 7%:
- Handicrafts
- Carpets
- Handlooms
- Small & Medium Enterprises (SME)
In respect of other categories of exporters, the provisions of the circular
DBOD.Dir.(Exp).BC.No.102 /04.02.001/2009-10 dated May 6, 2010 would continue to
apply.
(Anand Sinha)
Executive Director