RBI/2008-09/
280
DBOD.Dir.(Exp).BC.No.80/04.02.01/2008- 09 November
15, 2008 All Scheduled Commercial Banks
(excluding
RRBs) Dear Sir, Rupee Export
Credit Interest Rates-Extension of period of credit Please
refer to our circular DBOD.Dir.(Exp.)No.68/04.02.01/2008-09
dated October 24, 2008 on the captioned subject. 2.
In view of the difficulties faced by exporters on account of the weakening of
external demand , it has been decided that the prescribed interest rate of BPLR
minus 2.5 percentage points as applicable on Pre-shipment Rupee Export Credit
may be extended up to 270 days (as against existing up to 180 days) with effect
from November 15, 2008. 3. The revised period of credit
has been incorporated in the Annexure to the Directive DBOD.Dir.(Exp).BC.No.79/04.02.01/2008-09
dated November 15, 2008 enclosed to this circular. (Vinay
Baijal)
Chief General Manager
DBOD.Dir.(Exp).BC.No.79/04.02.01/2008-09 November
15, 2008 Rupee Export Credit Interest
Rates-Extension of period of credit 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
15, 2008 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 15, 2008 to April 30, 2009 will not be 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 270 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. | |
|