November 15, 2008
Kartika 24, 1930 (S)

To

All Scheduled Banks [excluding Regional Rural Banks (RRBs)]

Dear Sir/Madam,

Please refer to paragraph No. 4(vii) of the Reserve Bank’s Press Release dated November 15, 2008 on the above-mentioned subject. As indicated therein, the eligible limit of export credit refinance (ECR) facility has been enhanced from the existing level of 15 per cent of the outstanding rupee export credit eligible for refinance as at the end of the second preceding fortnight to 50 per cent. The rate of interest charged on the ECR facility will continue to be the prevailing repo rate under the liquidity adjustment facility (LAF) of the Reserve Bank which is currently 7.5 per cent.

3. Part A of the reporting format appearing in Annex III of the Master Circular Ref.No.MPD.302/07.01.279/2008-09 dated July 1, 2008 is accordingly modified and enclosed.

Yours faithfully

(M.D. Patra)
Adviser-in-Charge

Form DAD 389

* Outstanding Export Credit for the purpose of working out refinance limits will be aggregate outstanding export credit minus export bills rediscounted with other banks/Exim Bank/Financial Institutions, export credit against which refinance has been obtained from NABARD/Exim Bank, pre-shipment credit in foreign currency (PCFC), export bills discounted/rediscounted under the scheme of 'Rediscounting of Export Bills Abroad', overdue rupee export credit and other export credit not eligible for refinance.