IECD No.4/04.02.01/2001-02 September 24, 2001 The Chairmen/Chief Executives of
all commercial banks Dear Sir, Rupee Export Credit Interest Rates Please refer to circular MPD/BC.209/07.01.279/2001-02 dated September 24, 2001. 2. On consideration of special circumstances, arising out of the recent global developments and its consequent implications for Indian trade it has been decided to effect a reduction in the ceiling interest rates on rupee export credit by 1 percentage point across the board effective from September 26, 2001 to March 31,2002. Thereafter, status quo ante will be restored automatically. The revised rates of interest alongwith the existing rates applicable upto September 25,2001 have been incorporated in the Annexure to the Directive DBOD.NO.BC/28/13.07.01/2001 dated September 24,2001 enclosed with this circular. 3. The revision in the interest rates would be applicable not only to fresh advances but also to the existing advances for the remaining period. 4. Please acknowledge receipt. Yours faithfully, (S.S.Gangopadhyay)
Chief General Manager RESERVE BANK OF INDIA
CENTRAL OFFICE
DEPARTMENT OF BANKING OPERATIONS AND DEVELOPMENT
CENTRE 1, WORLD TRADE CENTRE,
CUFFE PARADE, COLABA
MUMBAI-400005 DIRECTIVE DBOD.No.BC. 28/13.07.01/2001 September 24, 2001 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 with effect from September 26, 2001 the interest rates on rupee export credit be changed as indicated in the Annexure enclosed to this Directive. (Vepa Kamesam)
Deputy Governor ANNEXURE Interest Rates on Rupee Export Credit of
Scheduled Commercial Banks (Per cent per annum) Categories of export credit | Interest Rates @ | | | Existing upto
September 25,2001) | Revised (with effect from Sept. 26,2001 to March 31,2002 | 1. Pre-Shipment Credit | | | a) i) Upto 180 days | Not exceeding PLR minus 1.5 percentage points | Not exceeding PLR minus 2.5 percentage points | ii) Beyond 180 days and 270 days | Not exceeding PLR plus 1.5 percentage points | Not exceeding PLR plus 0.5 percentage points | b) Against incentives receivable from Government covered by ECGC guarantee upto 90 days | Not exceeding PLR minus 1.5 percentage points | Not exceeding PLR minus 2.5 percentage points | 2. Post-Shipment Credit | | | a) On demand bills for transit period (as specified by FEDAI) | Not exceeding PLR minus 1.5 percentage points | Not exceeding PLR minus 2.5 percentage points | b) Usance Bills (for total period comprising usance period of export bills, transit period as specified by FEDAI and grace period wherever applicable) i) Upto 90 days
ii) Beyond 90 days and upto 6 months from the date of shipment |
Not exceeding PLR minus 1.5 percentage points
Not exceeding PLR plus 1.5 percentage points |
Not exceeding PLR minus 2.5 percentage points
Not exceeding PLR plus 0.5 percentage points | c) Against incentives receivable from Government covered by ECGC guarantee upto 90 days | Not exceeding PLR minus 1.5 percentage points | Not exceeding PLR minus 2.5 percentage points | d) Against undrawn balances (upto 90 days) | Not exceeding PLR minus 1.5 percentage points | Not exceeding PLR minus 2.5 percentage points | e) Against retention money (for supplies portion only) payable within one year from the date of shipment (upto 90 days) | Not exceeding PLR minus 1.5 percentage points | Not exceeding PLR minus 2.5 percentage points | 3. Deferred Credit | | | Deferred credit for the period beyond 180 days | Free* | Free* | 4. Export Credit Not Otherwise
specified(ECNOS) | | | a) Pre-shipment credit | Free* | Free* | b) Post-shipment credit | Free* | Free* |
@ Note : Since these are ceiling rates, banks would be free to charge any rate the ceiling rates. *Free : The banks are free to decide the rate of interest to be charged, in view the PLR and spread guidelines. |