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RBI/2005-06/195
DBOD Dir (Exp).BC.No.41/04.02.01/2005-06
November 2, 2005
All Scheduled Commercial Banks
(excluding RRBs)
Dear Sirs,
Rupee Export Credit Interest Rates
Please refer to our circular (RBI
/ 2004-05/ 443) DBOD.Dir (Exp). No.83 / 04.02.01/ 2004-05 dated April 29, 2005
on the captioned subject.
2. The validity of the interest
rates on rupee export credit indicated in the above circular would now remain
in force upto April 30, 2006. In this connection, you may please refer to RBI
circular No.MPD.BC.276/
07.01.279/2005-06 dated October 28, 2005. The rates of interest applicable
have been incorporated in the Annex to the Directive
DBOD No.BC.42/13.07.01/2005-06 dated November 2, 2005 enclosed to this circular.
3. Please acknowledge receipt.
Yours faithfully,
( Amarendra Mohan)
Chief General Manager
DIRECTIVE DBOD.BC.No. 42/13.07.01/ 2005-06
November 2, 2005
Interest Rates on Advances
In exercise of the powers conferred
by Sections 21 and 35A 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 November 1, 2005, the interest
rates on rupee export credit would be as indicated in the Annex enclosed to
this Directive.
(Usha Thorat)
Executive Director
ANNEX
Interest Rates on Rupee Export
Credit of Scheduled Commercial Banks
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Categories of export credit
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Interest Rates@ (Per cent per annum)
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Effective from November 1, 2005 to April
30, 2006
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1. Pre-Shipment Credit
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(a) (i)Upto 180 days
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Not exceeding BPLR minus 2.5 percentage
points
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(ii) Beyond 180 days and upto 270 days
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Free*
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(b)Against incentives receivable from Government
covered by ECGC guarantee upto 90 days
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Not exceeding BPLR minus 2.5 percentage
points
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2. Post-Shipment Credit
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(a)On demand bills for transit period (as
specified by FEDAI)
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Not exceeding BPLR minus 2.5 percentage
points
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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)
(i) Upto 90 days
(ii)Beyond 90 days and upto 6 months
from the date of shipment
(iii)Upto 365 days for exporters under
the Gold Card Scheme
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Not exceeding BPLR minus 2.5 percentage
points
Free*
Not exceeding BPLR minus 2.5 percentage
points.
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(c) Against incentives receivable from
Government( covered by ECGC guarantee) upto 90 days
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Not exceeding BPLR minus 2.5 percentage
points
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(d) Against undrawn balances (upto 90 days)
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Not exceeding BPLR minus 2.5 percentage
points
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(e) Against retention money (for supplies
portion only) payable within one year from
the date of shipment (Upto 90 days)
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Not exceeding BPLR minus 2.5 percentage
points
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3. Deferred Credit
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Deferred credit for the period beyond
180 days
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Free*
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4.Export Credit Not Otherwise Specified
(ECNOS)
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(a) Pre-shipment credit
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Free*
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(b) Post-shipment credit
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Free*
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@ Since these are ceiling rates, banks would be free to charge any rate below
the ceiling rates.
BPLR: Benchmark Prime Lending rate
* Banks are free to decide the rate of interest,
keeping in view the BPLR and spread guidelines.
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