IECD No.4/04.02.01/2001-02

September 24, 2001

The Chairmen/Chief Executives of
all commercial banks

Dear Sir,

Rupee Export Credit Interest Rates

Please refer to circular MPD/BC.209/07.01.279/2001-02 dated September 24, 2001.

2. On consideration of special circumstances, arising out of the recent global developments and its consequent implications for Indian trade it has been decided to effect a reduction in the ceiling interest rates on rupee export credit by 1 percentage point across the board effective from September 26, 2001 to March 31,2002. Thereafter, status quo ante will be restored automatically. The revised rates of interest alongwith the existing rates applicable upto September 25,2001 have been incorporated in the Annexure to the Directive DBOD.NO.BC/28/13.07.01/2001 dated September 24,2001 enclosed with this circular.

3. The revision in the interest rates would be applicable not only to fresh advances but also to the existing advances for the remaining period.

4. Please acknowledge receipt.

Yours faithfully,

(S.S.Gangopadhyay)
Chief General Manager

RESERVE BANK OF INDIA
CENTRAL OFFICE
DEPARTMENT OF BANKING OPERATIONS AND DEVELOPMENT
CENTRE 1, WORLD TRADE CENTRE,
CUFFE PARADE, COLABA
MUMBAI-400005

DIRECTIVE DBOD.No.BC. 28/13.07.01/2001

September 24, 2001

Interest Rates on Advances

In exercise of the powers conferred by Sections 21 and 35A 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 September 26, 2001 the interest rates on rupee export credit be changed as indicated in the Annexure enclosed to this Directive.

(Vepa Kamesam)
Deputy Governor

ANNEXURE

Interest Rates on Rupee Export Credit of
Scheduled Commercial Banks

(Per cent per annum)

@ Note : Since these are ceiling rates, banks would be free to charge any rate the ceiling rates.

*Free : The banks are free to decide the rate of interest to be charged, in view the PLR and spread guidelines.