Ref.No.MPD.BC. 209 / 07.01.279 / 2001-02
September 24, 2001
Ashwina 2,1923 (Saka)
To
All Scheduled Commercial Banks
Dear Sirs,
Interest Rate Ceilings on Rupee Export Credit
On the consideration of special circumstances arising out of the recent developments in the US and its consequent impact on Indian trade, it has been decided to effect a temporary revision in the ceiling of interest rates charged by scheduled commercial banks on pre-shipment and post-shipment rupee export credit with effect from September 26, 2001. The existing and the new interest rate ceilings are given in the annexure.
2. The revised interest rates on export credit will be applicable up to March 31, 2002. Thereafter, status quo ante will be restored automatically, unless otherwise notified.
A communication to banks will be sent separately.
3. Kindly acknowledge receipt of this letter.
Yours faithfully,
(K. Kanagasabapathy)
Adviser-in-Charge
Annexure
Interest Rate Ceilings on Export Credit of Scheduled Commercial Banks
|
Category |
Existing |
New*
(With effect from
September 26, 2001) |
|
Pre-shipment Credit
i) Up to 180 days
(ii) Beyond 180 days
and up to 270 days
Post-shipment Credit
a) On demand bills for
transit period (as
specified by FEDAI)
b) Usance Bills
(i) Up to 90 days
(ii) Beyond 90 days and
up to 6 months from date
of shipment |
Not exceeding PLR minus
1.5 percentage points
Not exceeding PLR plus
1.5 percentage points
Not exceeding PLR minus
1.5 percentage points
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
Not exceeding PLR minus
2.5 percentage points
Not exceeding PLR minus
2.5 percentage points
Not exceeding PLR plus
0.5 percentage points
|
* Note : Since these are ceiling rates, banks would be free
to charge any rate below the ceiling rates.
|