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No.14/005/RBI/2007
July 21, 2007
Members of the Council
Sub : Interest Rates on
Rupee Export Credit.
Dear Member,
As
members are aware, as per the existing guidelines, banks charge
interest rate not exceeding BPLR minus 2.5% on rupee pre-shipment
export credit upto 180 days and rupee post-shipment export credit
upto 90 days.
The
Government of India announced reduction in interest rates on export
credit for 9 sectors and also for exporters in SME sector including
exporters of leather products on July 13, 2007. Accordingly, banks
will now charge interest rate not exceeding BPLR minus 4.5% on
pre-shipment credit upto 180 days and post-shipment credit upto 90
days on the outstanding amount for the period April 1, 2007 to
December 31, 2007 to the exporters of leather products.
Copies
of Notifications No.RBI/2007-2008/93- DBOD.Dir(Exp).BC.No.22/04.02.01/2007-08
and DBOD.Dir(Exp).BC.No.21/04.02.01/2007-08 dated July 13,2007
issued by the Reserve Bank of India are enclosed herewith for your
information and reference.
Members
are requested to take note of this benefit which is available to the
leather sector.
Thanking you,
Yours faithfully,
Dr. K. Elangovan
Executive Director
Council for Leather Exports
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