Please
refer to our circulars DBOD.
Dir.(Exp.)No.22, 34B
and 54/04.02.01/
2007-08 dated July 13, October 6 and November 30, 2007 respectively on the
captioned subject regarding provision of interest subvention to all scheduled
commercial banks in respect of rupee export credit to the specified categories
of exporters, with effect from April 01, 2007 up to March 31, 2008.
2.
It has been decided that the interest subvention on export credit may be continued
for one more year from April 1, 2008 till March 31, 2009 on the terms and conditions
as they existed on March 31, 2008. However, while allowing this benefit it may
be ensured that the interest rate after subvention does not fall below 7 per cent
which is the rate applicable to agriculture sector under priority sector lending.
3.
A directive No.DBOD.DIR.(Exp.)BC.No.72/04.02.01/2007-08 dated April
25, 2008 issued in this regard is enclosed.
Yours
faithfully,
(P.Vijaya Bhaskar)
Chief General Manager
DBOD .Dir.(Exp).BC.No.72/04.02.01/2007-08
April
25, 2008
Interest Rates on Advances
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 continuation of directives DBOD
.Dir.(Exp).BC.No.21, 34A
and 53/04.02.01/2007-08
dated July 13, October 6 and November 30, 2007, respectively hereby directs that
interest subvention on export credit may be continued for one more year from April
1, 2008 till March 31, 2009 on the terms and conditions as they existed on March
31, 2008. However, while allowing this benefit it may be ensured that the interest
rate after subvention does not fall below 7 per cent which is the rate applicable
to agriculture sector under priority sector lending.
(Anand
Sinha)
Executive Director