Interest Rates on Rupee Export Credit – UCBs

RBI/2010-11/367

UBD.BPD.(PCB) Cir. No 5/13.05.000/2010-11

January 11, 2011

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 circular UBD.CO.BPD.Cir.No.1/13.05.000/2009-10 dated September 16, 2009 extending the interest subvention on rupee export credit to specified export sectors till March 31, 2010.

2. It has been decided to extend interest subvention of 2% on pre-shipment rupee export credit upto 270 days and post shipment rupee export credit upto 180 days on the specified export sectors / sub-sectors with effect from April 1, 2010 to March 31, 2011.

Specified Sectors / Sub-sectors:

(i) Handicrafts

(ii) Carpets

(iii) Handlooms

(iv) Small and Medium Enterprises (SME) (as defined in Annex I)

(v) Leather and Leather Manufactures (specified sub-sectors only)

(vi) Jute Manufacturing including Floor Covering (specified sub-sectors only)

(vii) Engineering Goods (specified sub-sectors only)

(viii) Textiles (specified sub-sectors only)

Details of specified sub-sectors are furnished in Annex II.

3. A Directive No.UBD.BPD.Dir.(Exp).No.2/13.05.000/2010-11 dated December 28, 2010, issued in this regard, is enclosed.

4. Claims for re-imbursement of subvention amount may be submitted to the Chief General Manager-in-Charge, Urban Banks Department, Reserve Bank of India, Central Office, Garment House, Worli, Mumbai – 400 018 on a quarterly basis starting from quarter ended June 30, 2010 in the format as per Annex III. The amount of subvention will be calculated on the amount of export credit from the date of disbursement up to the date of repayment or up to the date beyond which the outstanding export credit becomes overdue i.e. for pre-shipment credit up to 270 days and post-shipment credit up to 180 days, whichever is earlier. The claims should be accompanied by an Auditor’s Certificate certifying that the claim for subvention of Rs ……………. for the period………. (specify the quarter) is true and correct. Settlement of the claim will be done only on receipt of this certificate.

Yours faithfully

(Uma Shankar)

Chief General Manager

_________________________________

Annex – I

 

Definition of SME

Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below :

(i)  A micro enterprise is an enterprise where investment in plant and machinery (original cost excluding land and building and the items specified by the Ministry of Small Scale Industries vide its notification No.S.O.1722(E) dated October 5, 2006) does not exceed Rs.25 lakh;

(ii) A small enterprise is an enterprise where the investment in plant and machinery (original cost excluding land and building and the items specified by the Ministry of Small Scale Industries vide its notification No.S.O.1722(E) dated October 5, 2006) is more than Rs.25 lakh but does not exceed Rs.5 crore; and

(iii) A medium enterprise is an enterprise where the investment in plant and machinery (original cost excluding land and building and the items specified by the Ministry of Small Scale Industries vide its notification No. S.O.1722(E) dated October 5, 2006) is more than Rs.5 crore but does not exceed Rs.10 crore.

_________________________________

Annex III

Rupee Export Credit for the period from ______ to ________

(to be submitted quarterly starting from quarter ended June 30, 2010)

(Pre-shipment Export Credit up to 270 days and

Post-shipment Export Credit up to 180 Days)

Category of Exporters Total Rupee Export Credit granted at 2% Less than the Rates charged for other categories of Exporters Amount of Subvention Claimed
(1) (2) (3)
(i) Handicrafts
(ii) Carpets
(iii) Handlooms
(iv) Small and Medium Enterprises (SME) (as defined in Annex I)
(v) Leather and Leather Manufactures
(vi) Jute Manufacturing including Floor covering
(vii) Engineering Goods
(viii) Textiles
Total
NB : Amount of subvention should be rounded off to the nearest rupee.

We certify having charged interest on the above loans at interest rates that are 2% below those charged for other categories of exporters by way of export credit to the eligible exporters as stated in the RBI circular No.UBD.BPD.PCB.Cir.No.___/13.05.000/2010-11 dated December ____, 2010 during the period _____to ________.

Dated : _________________

Name and Designation of Authorised Signatory

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