| RBI/2007-08/166
Ref.No.MPD.BC.295
/07.01.279 / 2007-08 October
25, 2007
Kartika
3, 1929 (S) To,
All
Scheduled Commercial Banks Dear
Sir/Madam, Interest
Rate Ceiling on Rupee Export Credit Please
refer to our circular No.MPD.BC.291/07.01.279/
dated April 12, 2007 in terms of which 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 has been stipulated at BPLR minus 2.5 per cent, valid up to October 31,
2007. 2.
It has been decided to extend the validity of the above dispensation up to April
30, 2008 (Annex). 3.
Moreover, banks would continue to charge interest rates not exceeding BPLR minus
4.5 percentage points on pre-shipment credit up to 180 days and post shipment
credit up to 90 days on the outstanding amount for the period April 1, 2007 to
March 31, 2008 to the categories of exporters as mentioned in circulars DBOD.Dir.(Exp).BC.No.22
/ 04.02.01 / 2007-08 and DBOD.Dir.(Exp).BC.No.34B
/ 04.02.01 / 2007-08 issued by the Reserve Bank on July 13, 2007 and October
6, 2007 respectively.
4. Kindly acknowledge receipt.
Yours
faithfully, (M.D.Patra)
Adviser-in-Charge
Annex
| Category |
With
effect from November 1, 2007
(up
to April 30, 2008) | |
Pre-shipment
Rupee Export Credit Up
to 180 days |
Not exceeding BPLR minus
2.5
percentage points.
| |
Post-shipment
Rupee Export Credit (a)
On demand bills for transit period
(as
specified by FEDAUI) (b)
Usance bills up to 90 days |
Not exceeding BPLR minus
2.5
percentage points
Not
exceeding BPLR minus
2.5 percentage points. |
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 |
|