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RBI/2005-06/362
DBOD .DIR (Exp). No. 78/04.02.01/2005-06
April 18, 2006
All Commercial Banks
Dear Sir,
Interest Rates on Export Credit
in Foreign Currency
Please refer to paragraph 113 of
the Annual Policy Statement for the year 2006-07 enclosed to the Governor's
letter No. MPD.BC.279/07.01.279/2005-06 dated April 18, 2006 relating to export
credit in foreign currency.
2. On
the basis of the recommendation of the Working Group to Review Export Credit,
it has been decided to revise the ceiling rate on export credit in foreign currency
by banks to LIBOR plus 100 basis points from the present ceiling rate of LIBOR
plus 75 basis points with immediate effect . Similar changes may be effected
in interest rates in cases where EURO LIBOR/EURIBOR have been used as the benchmark.
The rates of interest applicable have been incorporated in the Annex to the
DBOD.DIR. BC. No. 77/ 04.02.01/2005-06 dated April 18, 2006
enclosed to this circular.
3. The revision in the rates
of interest would be applicable not only to fresh advances but also to the existing
advances for the remaining period.
4. Please acknowledge receipt.
Yours faithfully,
( P. Vijaya Bhaskar )
Chief General Manager
DBOD.DIR (Exp).BC.No.77 / 04.02.01/ 2005-06
April 18, 2006
Interest Rates on Export Credit
in Foreign Currency
In exercise of the powers conferred
by Sections 21 and 35A 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 April 18, 2006, the interest
rates on export credit in foreign currency would be as indicated in the Annex
enclosed to this Directive.
(Anand Sinha )
Executive Director
Annexure
Schedule of Interest Rates on Export
Credit in Foreign Currency
of scheduled commercial banks effective from April 18, 2006
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Interest rates
(per annum)
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1.
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Pre-shipment Credit
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(a)
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Upto 180 days
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Not exceeding 100 basis
points
over LIBOR/EURO LIBOR/EURIBOR
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(b)
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Beyond 180 days and upto 360 days
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Rate for initial period
of 180 days prevailing at the time of extension plus 200 basis points
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2.
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Post-shipment Credit
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(a)
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On demand bills for transit period (as
specified by FEDAI)
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Not exceeding 100 basis
points
over LIBOR/EURO LIBOR/EURIBOR
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(b)
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Usance bills (for total period comprising
usance period of export bills, transit period as specified by FEDAI
and grace period wherever applicable)
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Upto 6 months from the date of shipment
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Not exceeding 100 basis
points
over LIBOR/EURO LIBOR/EURIBOR
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(c)
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Export bills (demand or usance) realised
after due date but upto date of crystalisation
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Rate for 2(b) above plus
200 basis points
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3.
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Export Credit Not Otherwise Specified
(ECNOS)
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(a)
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Pre-shipment credit
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Free @
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(b)
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Post-shipment credit
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Free @
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@
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Banks are free to decide the rate of interest
being rupee credit rate keeping in view the PLR and spread guidelines.
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