RBI fixes interest rate on rupee export credit at BPLR minus 2.5%

Mumbai, Apr 28 (UNI) The Reserve Bank of India today announced the interest rates on Rupee Export Credit of Scheduled Commercial Banks at Benchmark Prime Lending Rate (BPLR) minus 2.5 percentage points per annum.

RBI in a release here said interest subvention on export credit has been extended by one more year from April 1, 2008 till March 31, 2009 on the terms and conditions as they existed on March 31, 2008.

Accordingly, banks would continue to charge interest rates not exceeding BPLR minus 4.5 and 6.5 percentage points on pre-shipment credit up to 180 days and post-shipment credit up to 90 days on the outstanding amount for a further period starting from April 1, 2008 to March 31, 2009.

The categories of export credit that would attract the interest rates, according to an RBI release, were Pre-shipment Credit: (a) Up to 180 days, (b) Against incentives receivable from Government covered by ECGC Guarantee up to 90 days.

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).

Since these are ceiling rates, banks would be free to charge any rate below the ceiling rates, the RBI said adding that interest rates for the above-mentioned categories of export credit beyond the tenures as prescribed above were deregulated and banks were free to decide the rate of interest, keeping in view the BPLR and spread guidelines.

UNI VK MAZ AG1917