RBI/2004-05/442
Ref No. MPD.BC.264 /07.01.279/2004-05
April 29, 2005
Vaishakha 9, 1927(Saka)
To,
All Scheduled Commercial Banks
Dear Sir,
Interest Rate Ceiling on Rupee Export Credit
On September 24, 2001, it was decided to
effect reduction in the ceiling of interest rates charged by scheduled commercial
banks on pre-shipment and post- shipment rupee export credit by one percentage
point with effect from September 26, 2001. This dispensation was earlier extended
up to April 30, 2005.
2. The validity of the reduction in the interest
rates on pre-shipment rupee export credit up to 180 days and post-shipment rupee
export credit up to 90 days announced on September 24, 2001 would now remain
in force up to October 31, 2005 (Annex).
3. Kindly acknowledge receipt of this letter.
Yours faithfully,
(Deepak Mohanty)
Adviser-in-Charge
Annex
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Category
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With effect from May 01, 2005
(up to October 31, 2005)
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Pre-shipment Rupee Export Credit
(i) Up to 180 days
(ii) Beyond 180 days and up to 270 days
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Not exceeding BPLR minus 2.5 percentage
points.
Free
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Post-shipment Rupee Export 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 the date of shipment
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Not exceeding BPLR minus 2.5 percentage
points.
Not exceeding BPLR minus 2.5 percentage points.
Free.
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BPLR : Benchmark Prime Lending Rate
Note: Since these are ceiling rates, banks would be free to charge any
rate below the ceiling rates.
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