| RBI/2006-07/149
DBOD.Dir.(Exp).BC.No.37/04.02.01/2006-07 October 20, 2006 All Scheduled Commercial Banks
(excluding RRBs) Dear Sir, Rupee Export Credit Interest Rates Please refer to our circular DBOD.Dir.(Exp.)No.83/04.02.01/2006-07 dated April 28, 2006 on the captioned subject. The validity of the interest rates on rupee export credit indicated in the above circular would now remain in force upto April 30, 2007. In this connection, you may please refer to RBI circular No.MPD.BC.285/07.01.279/2006-07 dated October 11, 2006. The rates of interest applicable have been incorporated in the Annexure to the Directive DBOD.No.BC.36/04.02.01/2006-07 dated October 20, 2006 enclosed to this circular. Yours faithfully, (P.Vijaya Bhaskar)
Chief General Manager
DBOD.Dir.(Exp).BC.No. 36 /04.02.01/2006-07 October 20, 2006 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, hereby directs that, with effect from November 01, 2006 the interest rates on rupee export credit would be as indicated in the Annex enclosed to this Directive. (Anand Sinha)
Executive Director
ANNEX
Interest Rates on Rupee Export Credit of Scheduled Commercial Banks Interest Rates effective from November 1, 2006 to April 30, 2007 will be not exceeding BPLR minus 2.5 percentage points per annum for the following categories of Export Credit. | Categories of Export Credit | | | | | 1. | Pre-shipment Credit | | | (a) Up to 180 days | | | (b)Against incentives receivable from Government covered by ECGC Guarantee up to 90 days | | 2. | Post-shipment Credit | | | (a) On demand bills for transit period (as specified by FEDAI) | | | (b) Usance bills (for total period comprising usance period of export bills, transit period as
specified by FEDAI, and grace period, wherever applicable) | | | (i) Up to 90 days
(ii) Up to 365 days for exporters under the Gold Card Scheme. | | | (c) Against incentives receivable from Govt. (covered by ECGC Guarantee) up to 90 days | | | (d) Against undrawn balances (up to 90 days) | | | (e) Against retention money (for supplies portion only) payable within one year from the date of
shipment (up to 90 days) | | BPLR : Benchmark Prime Lending Rate
Note: 1. Since these are ceiling rates, banks would be free to charge any rate below the ceiling rates.
2. Interest rates for the above-mentioned categories of export credit beyond the tenors as prescribed
above are deregulated and banks are free to decide the rate of interest, keeping in view the BPLR
and spread guidelines. | | |