RBI/2010-11/165
DBOD.Dir.(Exp).BC.No.36 /04.02.001/2010-11
August 9, 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 employment oriented export sectors viz. Handicrafts,
Carpets, Handlooms and Small & Medium Enterprises (SME). Banks were further
advised vide our circular
DBOD.Dir.(Exp).BC.No.115/04.02.01/2009-10 dated June
29, 2010 that 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. Accordingly, banks may reduce the interest rate chargeable to the
exporters as per Base Rate system in the above mentioned sectors eligible for
export credit subvention by the amount of subvention available subject to a
floor rate of 7%.
2. It has been decided to extend interest subvention of 2% on rupee export
credit with effect from April 1, 2010 to March 31, 2011 on the same terms and
conditions to certain additional sectors. The new list would be as follows.
- Handicrafts
- Carpets
- Handlooms
- Small and Medium (SME) (as defined in Annex III)
- Leather and Leather Manufactures
- Jute Manufacturing including Floor covering
- Engineering Goods
- Textiles
(The additions have been indicated above in bold letters).
Details of the additional sectors/sub-sectors are furnished in
Annex I.
3. A directive No. DBOD.Dir.(Exp).BC.No.35/04.02.001/2010-11 dated
August 9, 2010 issued in this regard is enclosed.
4 A modified format for claiming interest subvention under the Base Rate
system is enclosed as Annex II. Banks may ensure that they use the new
format for claiming interest subvention in respect of all rupee export credit
advances granted / renewed on or after July 1, 2010. They may use the format
enclosed to our circular dated April 23, 2010 for claiming interest subvention
for rupee export credit advances linked to BPLR.
5. Other instructions contained in our circulars dated April 23, 2010 and
June 29, 2010 remain unchanged.
Yours faithfully,
(P. R. Ravi Mohan)
Chief General Manager
ANNEX II
Rupee Export Credit for the period from July 1, 2010
to March 31, 2011
Claim for the quarter ended...............
|
Category of Exporters
|
Total Rupee export credit granted at or above
Base Rate
|
Amount of subvention claimed (rounded off
to the nearest rupee)
|
|
(1)
|
(2)
|
(3)
|
|
(i)Handicrafts
(ii)Carpets
(iii)Handlooms
(iv)Small & Medium Enterprises (SME)*
(v)Leather & Leather manufactures
(vi)Jute Mfg. including Floor Covering
(vii) Engineering Goods
(viii) Textiles
|
|
|
|
Total
|
|
|
|
*As defined in Annex III.
|
We certify having charged interest rates on the above loans at or above Base
Rate 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 23,
2010, DBOD. Dir.(Exp). BC.No.115 / 04.02.001 / 2009-10 dated June 29, 2010 and
DBOD.Dir.(Exp).BC.No.35/04.02.001/ 2010-11 dated August 9, 2010 during the
period ............ to ...............
Dated : _________________
(Name and stamp of
Authorised Signatory)
Annex III
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. 35 /04.02.001/2010-11
August 9, 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, in partial modification
of directives DBOD.Dir.(Exp).BC.No.93/04.02.001/2009-10 dated April 29, 2010 and
DBOD.Dir.(Exp).BC.No.114/04.02.001/2009-10 dated June 29, 2010, hereby notifies
as under:
It has been decided to extend the coverage of the interest subvention scheme
for the period April 1, 2010 to March 31, 2011 to certain additional sectors on
the same terms and conditions. The new list would be as follows.
- Handicrafts
- Carpets
- Handlooms
- Small and Medium (SME) (as defined in the Annex)
- Leather and Leather Manufactures
- Jute Manufacturing including Floor covering
- Engineering Goods
- Textiles
(The additions have been indicated above in bold letters)
(Anand Sinha)
Executive Director
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.