August 06, 1998
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 the interest rate on export credit, indicated
in Annexure to its Directive DBOD. No. Dir. BC. 33/13.07.01/97-98 dated April
29, 1998, be changed as given in column 3 of the Annexure enclosed to this Directive,
from the date of this Directive and upto March 31, 1999. As from April 1, 1999,
the interest rates as given in column 2 of the Annexure will be applicable unless
notified otherwise.
(S. Gurumurthy)
Executive Director
ANNEXURE
Interest rates on Export Credit of scheduled commercial banks
| Rate of interest
|
Rate of interest
|
||
|
1
|
2
|
3
|
|
| 4 | Export Credit | ||
| (1) | Pre-shipment Credit | ||
| (i) | (a) Upto 180 days | 11.00 | 9.00 |
| (b) Beyond 180 days and upto 270 days | 14.00 | 12.00 | |
| (ii) | Against incentives receivable from Government covered by ECGC Guarantee (upto 90 days) | 11.00 |
9.00
|
| (2) | Post-shipment Credit | ||
| (i) |
Demand bills for transit period (as specified by FEDAI) |
Not exceeding 11.00 |
9.00 |
| (ii) |
Usance Bills (For total period
comprising (a) Upto 90 days (b) Beyond 90 days |
Not exceeding 11.00 13.00 |
9.00 11.00 |
| (iii) | Against incentives receivable from Government covered by ECGC Guarantee (upto 90 days) | Not exceeding 11.00 | 9.00 |
| (iv) |
Against undrawn balances (upto 90 days) |
Not exceeding 11.00 | 9.00 |
| (v) |
Against retention money (for
supplies portion only)payable
within one year from |
Not exceeding 11.00 | 9.00 |
| (3) | Deferred Credit | ||
| (i) |
Deferred credit for the |
Free* | Free* |
| (4) | Export Credit not otherwise specified | ||
| (a) Pre-shipment
credit |
Free* | Free* | |
|
(b) Post-shipment credit |
20.00 |
20.00 (minimum) |
*Free = the bank is free to decide
the rate of interest to be charged.