Interest rates on Export Credit in Foreign Currency - RBI - Reserve Bank of India
Interest rates on Export Credit in Foreign Currency
IECD No. 14/04.02.01/2000-01 April 19, 2001 The Chairmen/Chief Executives of Dear Sir, Interest rates on Export Credit Please refer to paragraph 70 of the statement on Monetary and Credit Policy for the year 2001-2002 enclosed to the Governor's letter No.MPD/BC/206/07.01.279/2000-01 dated April 19, 2001 relating to export credit in foreign currency. 2. With the ceiling rate on FCNR (B) deposits being lowered to LIBOR/SWAP rates from LIBOR/SWAP rates plus 50 basis points, it has been decided to revise the ceiling rate on foreign currency loans for exports by banks to LIBOR plus 1.0 percentage point. Accordingly, banks may extend export credit in foreign currency to exporters at interest rates not exceeding one percent over LIBOR with immediate effect. The schedule of interest rates effective from 19 April 2001 is furnished in the Annexure. 3. Similar changes may be effected in interest rates in cases where EURO LIBOR/EURIBOR have been used as the benchmark. 4 . 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. 5. A copy of your internal instructions issued in this regard to your branches may be forwarded to us for our information and record at the earliest. 6. Please acknowledge receipt. Yours faithfully, (S.S.Gangopadhyay) Encl : As above Schedule of Interest Rates on Export Credit in -------------------------------------------------------------- Interest rates
@ Banks are free to decide the rate of interest being rupee credit rate keeping in view the PLR and spread guidelines. |