RBI extended low interest rate benefit to exporters up to June 30

The Reserve Bank today extended the benefit of low interest rates for exporters up to June 30. The ceilings on interest rates on pre-shipment and post-shipment rupee-export credit were stipulated at benchmark prime lending rate minus 2.5 per cent.

As per the direction issued by the central bank earlier, the benefit was valid up to April 30. “It has been decided to extend the validity…up to June 30,” the RBI said.

The move assumes significance as exporters are still facing demand problem in the major Western markets.

Exports after falling for consecutive 13 months since October 2008 turned positive in November 2009.