RBI Frees Interest Rates on Export Credit
in Foreign Currency w.e.f. 5 May, 2012
[Ref: DBOD.DIR.No.100/04.02.001/2011-12 dated 4 May
2012]
Subject: 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.
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.