To:
All Scheduled Banks (excluding Regional Rural Banks (RRBs))

Dear Sirs,

Please refer to Paragraph 76 of the Governor’s statement on Monetary and Credit Policy for the year 2003-04 enclosed with his letter No. MPD. BC. 230/07.01.279/2002-03 dated April 29, 2003 (copy of the paragraph enclosed).

2. In the mid-term Review of the Monetary and Credit Policy in October 2002, it was indicated that interest rates on post-shipment rupee export credit beyond 90 days and upto 180 days would be deregulated with effect from May 1, 2003. In response to the suggestion received from the exporting community, in the present uncertain geopolitical environment, it has been decided to continue extending refinance facility to eligible export credit remaining outstanding under post-shipment rupee credit beyond 90 days and up to 180 days.

3. This measure will be reviewed again in October 2003.

Kindly acknowledge receipt.

Yours faithfully

Encl.: as above

76. In the mid-term Review of October 2002, it was indicated that interest rates on post-shipment rupee export credit beyond 90 days and up to 180 days would be deregulated with effect from May 1, 2003. In response to the suggestion received from the exporting community, in the present uncertain geopolitical environment, it has been decided:

• To continue extending refinance facility to eligible export credit remaining outstanding under post-shipment rupee credit beyond 90 days and up to 180 days.

This measure will be reviewed again in October 2003