RBI/2013-14/207
UBD.BPD.(AD) Cir. No.3/13.05.000/2013-14

August 30, 2013

Chief Executive Officer
Scheduled Primary (Urban) Co-operative Banks
(holding AD Category I licence)

Dear Sir/ Madam

Interest Rates on Rupee Export Credit - UCBs

Please refer to our circular UBD.BPD.(AD).Cir. No. 2/13.05.000/2012-13 dated January 22, 2013 on the captioned subject, extending the interest subvention of 2% up to March 31, 2014 on pre and post shipment rupee export credit to specified export sectors.

2. The Government of India has decided to increase the rate of interest subvention on the exisiting sectors from 2% to 3% with effect from August 1, 2013

3. A directive No.UBD.BPD.Dir.(Exp) No.2/13.05.000/2013-14 dated August 26, 2013 issued in this regard is enclosed.

4. All other terms and conditions mentioned in our circulars UBD.BPD.(AD).Cir. No.2/13.05.000/2012-13 dated January 22, 2013 and UBD.BPD.(AD).Cir. No. 4/ 13.05.000/ 2012-13 dated June 4, 2013 remain unchanged.

Yours faithfully

(A.K. Bera)
Principal Chief General Manager

Encl: as above

UBD.BPD.Dir. (Exp). No. 2/13.05.000/2013-14

August 26, 2013

Interest Rates on Rupee Export Credit - UCBs

In exercise of powers conferred by Section 21 and 35 A of the Banking Regulation Act, 1949 read with Section 56, and in partial modification of its Directive UBD.BPD. Dir. (Exp). No.9/13.05.000/ 2012-13 dated January 21, 2013, the Reserve Bank of India, being satisfied that it is necessary and expedient in the public interest so to do, hereby directs that, the rate of interest subvention on the existing sectors under the Interest Subvention Scheme on Rupee Export Credit is increased from 2 % to 3 % with effect from August 1, 2013.

(S. Karuppasamy)
Executive Director