RBI / 2004-05/ 324
DBOD. IECS. No. 66 / 04.02.02/ 2004-05
December 31, 2004
The Chairman / Chief Executives of all
Commercial Banks
Dear Sir
Foreign Currency loans to Exporters-Periodicity
of charging interest
Please refer to paragraph (b) of our circular
IECD. No. EFD.30/ 04.02.15/ 93-94 dated February 28, 1994 and also paragraph
1.1.5 (iv) of our Master Circular
dated September 1, 2004 on Export Credit in Foreign Currency.
We advise that the paragraphs may be amended
to read as follows:
'Banks may collect interest on PCFC at monthly
intervals against sale of foreign currency or out of balances in EEFC accounts
or out of discounted value of the export bills if PCFC is liquidated within
the monthly rest for collection of interest.'
Yours faithfully
(A. Sreekumaran)
General Manager
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