Rupee Export Credit Interest Rates-Extension of period of credit - FEMA - DBOD.Dir.(Exp).BC.No.79/04.02.01/2008-09

DBOD.Dir.(Exp).BC.No.79/04.02.01/2008-09 November 15, 2008 Rupee Export Credit Interest Rates-Extension of period of credit In exercise of the powers conferred by Sections 21 and 35 A 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 November 15, 2008 the interest rates on rupee export credit would be as indicated in the Annex enclosed to this Directive. ( Anand Sinha ) Executive Director ANNEX Interest Rates on Rupee Export Credit of Scheduled Commercial Banks Interest Rates effective from November 15, 2008 to April 30, 2009 will not be exceeding BPLR minus 2.5 percentage points per annum for the following categories of Export Credit. Categories of Export Credit 1. Pre-shipment Credit (a) Up to 270 days (b)Against incentives receivable from Government covered by ECGC Guarantee up to 90 days 2. Post-shipment Credit (a) On demand bills for transit period (as specified by FEDAI) (b) Usance bills(for total period comprising usance period of export bills, transit period as specified by FEDAI, and grace period, wherever applicable) i) Up to 90 days ii) Up to 365 days for exporters under the Gold Card Scheme. (c) Against incentives receivable from Govt. (covered by ECGC Guarantee) up to 90 days (d) Against undrawn balances (up to 90 days) (e) Against retention money (for supplies portion only) payable within one year from the date of shipment (up to 90 days) 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 of export credit beyond the tenors as prescribed above are deregulated and banks are free to decide the rate of interest, keeping in view the BPLR and spread guidelines.