RBI extends export credit rate cut
By Our Banking Bureau | 12 Mar 2002
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Mumbai: The Reserve Bank of India (RBI) has extended the facility of reduction in the ceiling of interest rates charged by scheduled commercial banks on pre-shipment and post-shipment rupee export credits for a further period of six months up to 30 September.
The RBI had, in September 2001, announced a reduction in the ceiling of interest rates for export credit by one percentage-point across the board. In a press release issued here, the RBI said the reduction is applicable to both pre-shipment and post-shipment credits.
The RBI had, in September 2001, announced a reduction in the ceiling of interest rates for export credit by one percentage-point across the board. In a press release issued here, the RBI said the reduction is applicable to both pre-shipment and post-shipment credits. "Considering the subsequent developments, the facility of reduced interest rates to export credit has now been extended for a further period of six months," it added. The maximum rate that the banks could charge to exporters is 2.5 percentage points below its prime-lending rate for pre-shipment credit up to 180 days and for post-shipment credit up to 90 days.
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