Regulatory and Other Measures April 2009

RBI/2008-09/459 Ref. No. MPD.BC.323/ 07.01.279/2008-09, Vaishakha 7, 1931(S), dated April 28, 2009

All Scheduled Commercial Banks

Interest Rate Ceiling on Rupee Export Credit

Please refer to our circulars No.MPD.BC.307/07.01.279/2008-09 dated October 24, 2008, DBOD.Dir. (Exp). BC. No.80 /04. 02.01 /2008-09 dated November 15, 2008 and DBOD.Dir.(Exp).BC.No.88/ 04.02.01/2008-09 dated November 28, 2008 in terms of which the ceiling on interest rates on pre-shipment rupee export credit up to 270 days and post-shipment rupee export credit up to 180 days has been stipulated at BPLR minus 2.5 per cent, valid up to April 30, 2009.

2. It has been decided to extend the validity of the above dispensation up to October 31, 2009 (Annex).

3. Kindly acknowledge receipt.

Annex

RBI/2008-09/450 Ref.No.MPD.BC.322/ 02.01.009/2008-09 dated April 22, 2009

All Scheduled Commercial Banks (excluding Regional Rural Banks)

Special Refinance Facility

Re: Special Refinance Facility (SRF) under Section 17(3B) of the Reserve Bank of India Act, 1934

Please refer to our circulars Ref. No. MPD.BC.309 /02.01.009/2008-09 dated November 3, 2008, MPD. BC. 312 / 02.01.009/2008-09 dated December 01, 2008 and MPD.BC.318 /02.01.009/2008-09 dated January 27, 2009 on the Special Refinance Facility (SRF) under Section17(3B) of the Reserve Bank of India Act, 1934.

2. Under this facility, scheduled commercial banks (excluding regional rural banks) are provided refinance from the Reserve Bank equivalent to up to 1.0 per cent of each bank’s net demand and time liabilities (NDTL) as on October 24, 2008 at the repo rate under the liquidity adjustment facility (LAF) up to a maximum period of 90 days during which refinance can be flexibly drawn and repaid. This facility was available up to September 30, 2009.

3. As indicated in the Annual Policy Statement for 2009-10 announced on April 21, 2009, it has been decided to extend this facility up to March 31, 2010.