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RBI/2006-07/146
Ref. No. MPD.BC. 285/07.01.279/2006-07
October 11, 2006
Ashwina 19, 1928 (Saka)
To
All Scheduled Commercial Banks
Dear Sir/Madam,
Interest Rate Ceiling on Rupee Export
Credit
At present, the ceiling on interest
rates on pre-shipment rupee export credit up to 180 days and post-shipment rupee
export credit up to 90 days is stipulated at BPLR minus 2.5 per cent. This dispensation
is valid up to October 31, 2006.
2. It has been decided to extend
the validity of the above dispensation up to April 30, 2007 (Annex).
3. Kindly acknowledge receipt.
Yours faithfully,
(M. D. Patra)
Adviser-in-Charge
Annex
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Category
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With effect from November 1, 2006
( up to April 30, 2007)
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Pre-shipment Rupee Export Credit
Up to 180 days
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Not exceeding BPLR minus
2.5 percentage points.
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Post-shipment Rupee Export Credit
(a) On demand bills for transit period
(as specified by FEDAI)
(b) Usance bills up to 90 days
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Not exceeding BPLR minus
2.5 percentage points
Not exceeding BPLR minus
2.5 percentage points
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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 beyond the tenors as prescribed
above are free.
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