RBI removes ceiling rate on export credit in foreign currency

Reserve Bank of India

RBI/2011-12/534
DBOD.DIR.No.100/04.02.001/2011-12

May 4, 2012

All Scheduled Commercial Banks
(Excluding RRBs)

Dear Sir / Madam,

Deregulation of Interest Rates on Export Credit in Foreign Currency

Please refer to our circulars DBOD. DIR. No. 52/04.02.001/2011-12 dated November 15, 2011 and DBOD. DIR. No. 91/04.02.001/2011-12 dated March 30, 2012 relating to interest rates on export credit in foreign currency.

2. With a view to increasing the availability of funds to exporters, it has been decided to allow banks to determine their interest rates on export credit in foreign currency with effect from May 5, 2012.

3. A directive DBOD.DIR.No.99/04.02.001/2011-12 dated May 4, 2012, issued in this regard is enclosed.

Yours faithfully

(Rajesh Verma)
Chief General Manager

DBOD.DIR.BC.No.99 /04.02.001/2011-12

May 4, 2012

Deregulation of Interest Rates on Export Credit in Foreign Currency

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 so to do, hereby directs that it has been decided to allow banks to determine their interest rates on export credit in foreign currency with effect from May 5, 2012.

(B. Mahapatra)
Executive Director