RBI/2009-10/157
Ref.: UBD.CO.BPD.Cir. No. 1/13.05.000/2009-10

September 16, 2009

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

Dear Sir/ Madam,

Rupee Export Credit Interest Rates

Please refer to our circular UBD.PCB.Cir. No. 3/13.05.000/2008-09 dated June 18, 2009 on the captioned subject regarding extension of interest subvention of 2 percentage points w.e.f. June 1, 2009 till September 30, 2009 on rupee export credit extended by Scheduled UCBs holding AD category I licences, to certain specified categories of export sector.

2. It has been decided to extend the interest subvention of 2% on rupee export credit for a further period of six months i.e. from October 1, 2009 till March 31, 2010 to the same sectors and on the same terms and conditions.

3. A directive UBD.BPD.DIR.No. 1/13.05.000/2009-10 dated September 10, 2009 issued in this regard is enclosed.

Yours faithfully,

(A. K. Khound)
Chief General Manager-in-Charge

Encl.: As above

UBD.BPD.Dir(Exp). No. 1/ 13.05.000/2009-10

September 10, 2009

Interest Rate on Rupee Export Credit

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 to do so, in continuation of directive UBD.BPD.Dir.(Exp) No. 1/ 13.05.000/2008-09 dated June 11, 2009 hereby directs that interest subvention on export credit may be continued for a further period of six months i.e. from October 1, 2009 to March 31, 2010 to the same sectors and on the same terms and conditions.

(V. K. Sharma)
Executive Director