RBI hikes rupee export credit interest rates

Mumbai, July 13 (UNI) The Reserve Bank of India (RBI) has decided to provide interest subvention of two per cent to scheduled commercial banks in respect of the rupee export credit to specified export categories.

The central bank move will enable banks to charge interest rates not exceeding Benchmark Prime Lending Rate (BPLR) minus 4.5 per cent on pre-shipment credit upto 180 days and post-shipment credit upto 90 days for the period from April 1 to December 31, 2007. The interest rate was 2.5 per cent earlier.

Exporters in sectors like textiles, readymade garments, leather products, handicrafts, engineering products, processed agricultural products, marine products, sports goods and toys, will come under the purview of amended guidelines.

In the notification, the RBI has also said that ''the amount of subvention would be reimbursed on the basis of quarterly claims submitted as at June 30, September 30, and December 31, 2007 within one month from the end of the respective quarters.'' UNI