Interest Subvention Scheme

7/21/2019 Interest Subvention Scheme

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RBI!"#$%#&'(

)B*) No+)IR+BC+#' "&+"!+""!!"#$%#&

,ul- #. !"

#" Asha/ha. #0$( 1Sak

All Sche/ule/ Commercial Banks1e3clu/ing RRBs2

)ear SirMa/am.

Master Circular - Rupee / Foreign Currency Export Credit and Customer Service To Exporters

4lease refer to the Master Circular )B*) No+)ir+1E3p2+BC+"'"&+"!+""!!"#!%#$ /ate/ ,ul- !. !"#! consoli/atin

the instructions gui/elines issue/ to banks till ,une $". !"#!. relating to Rupee 5oreign Currenc- E3port Cre/it

6 Customer Ser7ice to E3porters+ 8he Master Circular has been suitabl- up/ate/ b- incorporating the instructionsissue/ upto ,une $". !"#$ an/ has also been place/ on the RBI 9ebsite 1http:999+rbi+org+in2+ A cop- of the

Master Circular is enclose/+

;ours faithfull-

14rakash Chan/ra Sahoo2

Chief <eneral Manager

Encl: as abo7e

Master Circular RUPEE / FORE!" CURRE"C# E$PORT CRE%T

& CUSTOMER SER'CE TO E$PORTERS

CO"TE"TS

Sr("o( Particulars

A 4urpose

B Classification

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https://www.rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?id=7377

https://www.rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?Id=8132&Mode=0#mc

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C 4re7ious instructions consoli/ate/

) Scope of Application

Structure

Intro/uction

Part )* Rupee Export Credit

# 4re%shipment Rupee E3port Cre/it

! 4ost%shipment Rupee E3port Cre/it

$ )eeme/ E3ports = 4rescribe/ Rate for Rupee E3port Cre/it

& Interest on Rupee E3port Cre/it

Part-+ Export Credit in Foreign Currency

( 4re%Shipment E3port Cre/it in 5oreign Currenc-

' 4ost%Shipment E3port Cre/it in 5oreign Currenc-

> Interest on E3port Cre/it in 5oreign Currenc-

Part-C Export Credit-Customer Service and Simpli,ication o, Procedures,or %elivery and Reporting Reuirements

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https://www.rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?Id=8132&Mode=0#st

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? Customer Ser7ice an/ Simplification of 4roce/ures

0 Reporting Re@uirements

#" 4re%Shipment Cre/it to )iamon/ E3porters% Conflict )iamon/s

## ANNE # % Recommen/ations of the Working <roup to Re7ie9 E3port Cre/it

#! ANNE ! % E3port Cre/it )ata 1)isbursement*utstan/ings2

#$ ANNE $ % n/ertaking from )iamon/ Clients

#& Anne3 & = Anne3 of #$& tariffs of engineering goo/s of 'th Interest Sub7ention Scheme

/ate/ ,anuar- #&. !"#$

#( Anne3 ( = Anne3 of #$# tariffs of Engineering goo/s of Interest Sub7ention=circular/ate/ Ma- !&. !"#$+

#' Anne3 ' = Anne3 of ' tariffs of 8e3tile goo/s of interest sub7ention circular /ate/ Ma-

!&. !"#$+

#> Appen/i3 I % Rupee E3port Cre/it%Circulars

#? Appen/i3 II % E3port Cre/it in 5oreign Currenc-%Circulars

#0 Appen/i3 III % E3port Cre/it%Customer Ser7ice%Circulars

M*STER CRCU.*R O" RUPEE / FORE!" CURRE"C#E$PORT CRE%T & CUSTOMER SER'CE TO E$PORTERS

*( Purpose




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8o consoli/ate the frame9ork of rulesregulations an/ clarifications on E3port Cre/it an/ Customer Ser7ice to

e3porters issue/ b- Reser7e Bank of In/ia from time to time+

+( Classi,ication

A statutor- /irecti7e issue/ b- the Reser7e Bank in e3ercise of the po9ers conferre/ b- Sections !# an/ $( A of th

Banking Regulation Act. #0&0+

C( Previous instructions consolidated

8his Master Circular consoli/ates an/ up/ates all the instructions containe/ in the Circulars liste/ in the

Appen/ices an/ clarifications issue/ /uring the -ear+

%( Scope o, *pplication

Applicable to all Sche/ule/ Commercial Banks. e3clu/ing Regional Rural Banks+

Structure

P*RT ) *Rupee Export Credit#+ 4re%shipment Rupee E3port Cre/it

!+ 4ost%shipment Rupee E3port Cre/it$+ )eeme/ E3ports = 4rescribe/ Rate of Rupee E3port Cre/it

&+ Interest on Rupee E3port Cre/it

P*RT- +

Export Credit in Foreign Currency(+ 4re%shipment E3port Cre/it in 5oreign Currenc-

'+ 4ost%shipment E3port Cre/it in 5oreign Currenc-

>+ Interest on E3port Cre/it in 5oreign Currenc-

P*RT ) C

Export Credit - Customer Service Simpli,ication o, Procedures ,or %elivery and ReportingReuirements

?+ Customer ser7ice an/ simplification of proce/ures

0+ Reporting re@uirements#"+ 4re%shipment cre/it to /iamon/ e3porters% conflict /iamon/s

##+ ANNE #%Recommen/ations of the Working <roup to Re7ie9 E3port Cre/it

#!+ ANNE !% E3port Cre/it )ata 1)isbursement *utstan/ings2#$+ ANNE $% n/ertaking from )iamon/ Clients



#&+ Appen/i3 I % Rupee E3port Cre/it%Circulars

#(+ Appen/i3 II % E3port Cre/it in 5oreign Currenc-%Circulars

#'+ Appen/i3 III% E3port Cre/it%Customer Ser7ice%Circulars

"TRO%UCTO"

Export Credit Sc0eme

8he RBI first intro/uce/ the scheme of E3port 5inancing in #0'>+ 8he scheme is inten/e/ to make short%term

9orking capital finance a7ailable to e3porters at internationall- comparable interest rates+

n/er the earlier scheme in force upto ,une $". !"#". RBI fi3e/ onl- the ceiling rate of interest for e3port cre/it

9hile banks 9ere free to /eci/e the rates of interest 9ithin the ceiling rates keeping in 7ie9 the Benchmark 4rimeLen/ing Rate 1B4LR2 an/ sprea/ gui/elines an/ taking into account track recor/ of the borro9ers an/ the risk

perception+ In or/er to enhance transparenc- in banks pricing of their loan pro/ucts. banks 9ere a/7ise/ to fi3 the

B4LR after taking into account 1i2 actual cost of fun/s. 1ii2 operating e3penses an/ 1iii2 a minimum margin to co7eregulator- re@uirement of pro7isioning capital charge an/ profit margin+ Ho9e7er. the B4LR s-stem. intro/uce/

in !""$. fell short of its original obDecti7e of bringing transparenc- to len/ing rates+ 8his 9as mainl- because un/e

the B4LR s-stem. banks coul/ len/ belo9 B4LR+ 5or the same reason. it 9as also /ifficult to assess the

transmission of polic- rates of the Reser7e Bank to len/ing rates of banks+

Accor/ingl-. base/ on the recommen/ations of the Working <roup on Benchmark 4rime Len/ing Rate 1Chairman

Shri )eepak Mohant-2 banks 9ere a/7ise/ to s9itch o7er to the s-stem of Base Rate 9+e+f+ ,ul- #. !"#"+ 8he Base

Rate S-stem is aime/ at enhancing transparenc- in len/ing rates of banks an/ enabling better assessment oftransmission of monetar- polic-+ n/er the Base Rate S-stem. applicable 9+e+f+ ,ul- #. !"#". interest rates

applicable for all tenors of rupee e3port cre/it a/7ances are at or abo7e Base Rate+

P*RT - *RUPEE E$PORT CRE%T

1( PRE-S2PME"T RUPEE E$PORT CRE%T

Rupee 4re%shipment Cre/it4acking Cre/it

)efinition

3Pre-s0ipment / Pac4ing Credit3 means an- loan or a/7ance grante/ or another cre/it pro7i/e/ b- a bank to

an e3porter for financing the purchase. processing. manufacturing or packing of goo/s prior to shipment 9orkingcapital e3penses to9ar/s ren/ering of ser7ices on the basis of letter of cre/it opene/ in his fa7our or in fa7our ofsome other person. b- an o7erseas bu-er or a confirme/ an/ irre7ocable or/er for the e3port of goo/s ser7ices

from In/ia or another e7i/ence of an or/er for e3port from In/ia ha7ing been place/ on the e3porter or some

other person. unless lo/gement of e3port or/ers or letter of cre/it 9ith the bank has been 9ai7e/+

4erio/ of A/7ance



1i2 8he perio/ for 9hich a packing cre/it a/7ance ma- be gi7en b- a bank 9ill /epen/ upon the circumstances of

the in/i7i/ual case. such as the time re@uire/ for procuring. manufacturing or processing 19here necessar-2 an/

shipping the relati7e goo/s ren/ering of ser7ices+ It is primaril- for the banks to /eci/e the perio/ for 9hich apacking cre/it a/7ance ma- be gi7en. ha7ing regar/ to the 7arious rele7ant factors so that the perio/ is sufficient t

enable the e3porter to ship the goo/s ren/er the ser7ices+

1ii2 If pre%shipment a/7ances are not a/Duste/ b- submission of e3port /ocuments 9ithin $'" /a-s from the /ate o

a/7ance. the a/7ances 9ill cease to @ualif- for prescribe/ rate of interest for e3port cre/it to the e3porter ab initio

1iii2 RBI 9oul/ pro7i/e refinance onl- for a perio/ not e3cee/ing #?" /a-s as per instructions issue/ b- RBI

)isbursement of 4acking Cre/it

1i2 *r/inaril-. each packing cre/it sanctione/ shoul/ be maintaine/ as separate account for the purpose of

monitoring the perio/ of sanction an/ en/%use of fun/s+

1ii2 Banks ma- release the packing cre/it in one lump sum or in stages as per the re@uirement for e3ecuting theor/ers LC+

1iii2 Banks ma- also maintain /ifferent accounts at 7arious stages of processing. manufacturing etc+ /epen/ing on

the t-pes of goo/s ser7ices to be e3porte/ e+g+ h-pothecation. ple/ge. etc+. accounts an/ ma- ensure that the

outstan/ing balance in accounts are a/Duste/ b- transfer from one account to the other an/ finall- b- procee/s ofrelati7e e3port /ocuments on purchase. /iscount. etc+

1i72 Banks shoul/ continue to keep a close 9atch on the en/%use of the fun/s an/ ensure that cre/it at lo9er rates o

interest is use/ for genuine re@uirements of e3ports+ Banks shoul/ also monitor the progress ma/e b- the e3porterin timel- fulfillment of e3port or/ers+

#+#+& Li@ui/ation of 4acking Cre/it

1i2 <eneral

8he packing cre/it pre%shipment cre/it grante/ to an e3porter ma- be li@ui/ate/ out of procee/s of bills /ra9n fo

the e3porte/ commo/ities on its purchase. /iscount etc+. thereb- con7erting pre%shipment cre/it into post%shipmen

cre/it+ 5urther. subDect to mutual agreement bet9een the e3porter an/ the banker it can also be repai/ prepai/ outof balances in E3change Earners 5oreign Currenc- Ac 1EE5C Ac2 as also from rupee resources of the e3porter to

the e3tent e3ports ha7e actuall- taken place+ If not so li@ui/ate/ repai/. banks are free to /eci/e the rate of interesas in/icate/ in paragraph &+!+$ from the /ate of a/7ance+

1ii2 4acking cre/it in e3cess of e3port 7alue

Where b-%pro/uct can be e3porte/



Where the e3porter is unable to ten/er e3port bills of e@ui7alent 7alue for li@ui/ating the packing cre/it /ue to the

shortfall on account of 9astage in7ol7e/ in the processing of agro pro/ucts like ra9 cashe9 nuts. etc+. banks ma-

allo9 e3porters. inter alia. to e3tinguish the e3cess packing cre/it b- e3port bills /ra9n in respect of b-%pro/uctlike cashe9 shell oil. etc+

b2 Where partial /omestic sale is in7ol7e/

Ho9e7er. in respect of e3port of agro%base/ pro/ucts like tobacco. pepper. car/amom. cashe9 nuts etc+. the

e3porter has necessaril- to purchase a some9hat larger @uantit- of the ra9 agricultural pro/uce an/ gra/e it into

e3portable an/ non%e3portable 7arieties an/ onl- the former is e3porte/+ 8he non%e3portable balance is necessaril-sol/ /omesticall-+ 5or the packing cre/it co7ering such non%e3portable portion. banks are re@uire/ to charge

commercial rate of interest applicable to the /omestic a/7ance from the /ate of a/7ance of packing cre/it an/ that

portion of the packing cre/it 9oul/ not be eligible for an- refinance from RBI+

E3port of /eoile/ /efatte/ cakes

Banks are permitte/ to grant packing cre/it a/7ance to e3porters of H4S groun/nut an/ /eoile/ /efatte/ cakes to

the e3tent of the 7alue of ra9 materials re@uire/ e7en though the 7alue thereof e3cee/s the 7alue of the e3port

or/er+ 8he a/7ance in e3cess of the e3port or/er is re@uire/ to be a/Duste/ either in cash or b- sale of resi/ual b-%

pro/uct oil 9ithin a perio/ not e3cee/ing $" /a-s from the /ate of a/7ance to be eligible for concessional rate ofinterest+

1iii2 Banks ha7e. ho9e7er. operational fle3ibilit- to e3ten/ the follo9ing rela3ations to their e3porter clients 9ho

ha7e a goo/ track recor/:

a2 Repa-ment li@ui/ation of packing cre/it 9ith procee/s of e3port /ocuments 9ill continue ho9e7er. this coul/

be 9ith e3port /ocuments relating to another or/er co7ering the same or another commo/it- e3porte/ b- thee3porter+ While allo9ing substitution of contract in this 9a-. banks shoul/ ensure that it is commerciall- necessar-

an/ una7oi/able+ Banks shoul/ also satisf- themsel7es about the 7ali/ reasons as to 9h- packing cre/it e3ten/e/for shipment of a particular commo/it- cannot be li@ui/ate/ in the normal metho/+ As far as possible. the

substitution of contract shoul/ be allo9e/ if the e3porter maintains account 9ith the same bank or it has the

appro7al of the members of the consortium. if an-+

b2 8he e3isting packing cre/it ma- also be marke/%off 9ith procee/s of e3port /ocuments against 9hich no packincre/it has been /ra9n b- the e3porter+ Ho9e7er. it is possible that the e3porter might a7ail of E4C 9ith one bank

an/ submit the /ocuments to another bank+ In 7ie9 of this possibilit-. banks ma- e3ten/ such facilit- after ensurin

that the e3porter has not a7aile/ of packing cre/it from another bank against the /ocuments submitte/+ If an-

packing cre/it has been a7aile/ of from another bank. the bank to 9hich the /ocuments are submitte/ has to ensurthat the procee/s are use/ to li@ui/ate the packing cre/it obtaine/ from the first bank+

c2 8hese rela3ations s0ould not 5e extended to transactions of sister associate group concerns+

Running Account 5acilit-

1i2 As state/ earlier. pre%shipment cre/it to e3porters is normall- pro7i/e/ on lo/gment of LCs or firm e3port



or/ers+ It is obser7e/ that the a7ailabilit- of ra9 materials is seasonal in some cases+ In some other cases. the time

taken for manufacture an/ shipment of goo/s is more than the /eli7er- sche/ule as per e3port contracts+ In man-

cases. the e3porters ha7e to procure ra9 material. manufacture the e3port pro/uct an/ keep the same rea/- forshipment. in anticipation of receipt of letters of cre/it firm e3port or/ers from the o7erseas bu-ers+ Ha7ing regar/

to /ifficulties being face/ b- the e3porters in a7ailing of a/e@uate pre%shipment cre/it in such cases. banks ha7ebeen authorise/ to e3ten/ 4re%shipment Cre/it 6Running *ccount7facilit- in respect of an- commo/it-. 9ithout

insisting on prior lo/gement of letters of cre/it firm e3port or/ers. /epen/ing on the bankFs Du/gement regar/ingthe nee/ to e3ten/ such a facilit- an/ subDect to the follo9ing con/itions:

a2 Banks ma- e3ten/ the GRunning AccountF facilit- onl- to those e3porters 9hose track recor/ has been goo/ as

also to E3port *riente/ nits 1E*s2 nits in 5ree 8ra/e ones E3port 4rocessing ones 1E4s2 an/ Special

Economic ones 1SEs2

b2 In all cases 9here 4re%shipment Cre/it GRunning AccountF facilit- has been e3ten/e/. letters of cre/it firm

or/ers shoul/ be pro/uce/ 9ithin a reasonable perio/ of time to be /eci/e/ b- the banks+

c2 Banks shoul/ mark off in/i7i/ual e3port bills. as an/ 9hen the- are recei7e/ for negotiation collection. agains

the earliest outstan/ing pre%shipment cre/it on 5irst In 5irst *ut 15I5*2 basis+ Nee/less to a// that. 9hile markinoff the pre%shipment cre/it in the manner in/icate/ abo7e. banks shoul/ ensure that e3port cre/it a7ailable in

respect of in/i7i/ual pre%shipment cre/it /oes not go be-on/ the perio/ of sanction or $'" /a-s from the /ate of

a/7ance. 9hiche7er is earlier+

/2 4acking cre/it can also be marke/%off 9ith procee/s of e3port /ocuments against 9hich no packing cre/it hasbeen /ra9n b- the e3porter+

1ii2 If it is notice/ that the e3porter is foun/ to be abusing the facilit-. the facilit- shoul/ be 9ith/ra9n forth9ith+

In cases 9here e3porters ha7e not complie/ 9ith the terms an/ con/itions. the a/7ance 9ill attract commerci

len/ing rate ab initio+ In such cases. banks 9ill be re@uire/ to pa- higher rate of interest on the portion of refinanca7aile/ of b- them from the RBI in respect of the relati7e pre%shipment cre/it+ All such cases shoul/ be reporte/ to

the Monetar- 4olic- )epartment. Reser7e Bank of In/ia. Central *ffice. Mumbai &"" ""# 9hich 9ill /eci/e the

rate of interest to be charge/ on the refinance amount+

8iv9 Running account ,acility s0ould not 5e granted to su5-suppliers(

Interest on 4acking Cre/it

Interest rate structure an/ instructions in regar/ thereto are /etaile/ in paragraph &+

E3port Cre/it against procee/s of che@ues. /rafts. etc+ representing a/7ance pa-ment for e3ports

1i2 Where e3porters recei7e /irect remittances from abroa/ b- means of che@ues. /rafts etc+ in pa-ment for e3ports

banks ma- grant e3port cre/it to e3porters of goo/ track recor/ till the realisation of procee/s of the che@ue. /raft

etc+ recei7e/ from abroa/. after satisf-ing themsel7es that it is against an e3port or/er. is as per tra/e practices in



respect of the goo/s in @uestion an/ is an appro7e/ metho/ of realisation of e3port procee/s as per e3tant rules+

1ii2 If. pen/ing compliance 9ith the abo7e con/itions. an e3porter has been grante/ accommo/ation at normal

commercial interest rate. banks ma- gi7e effect to prescribe/ rate for e3port cre/it rate retrospecti7el- once the

aforesai/ con/itions ha7e been complie/ 9ith an/ refun/ the /ifference to the e3porter+

Rupee 4re%shipment Cre/it to specific sectorssegments

Rupee E3port 4acking Cre/it to manufacturer suppliers for e3ports route/ through S8CMM8C*ther E3por

Houses. Agencies etc+

1i2 Banks ma- grant e3port packing cre/it to manufacturer suppliers 9ho /o not ha7e e3port or/ersletters of cre/i

in their o9n name an/ goo/s are e3porte/ through the State 8ra/ing CorporationMinerals an/ Metal 8ra/ingCorporation or other e3port houses. agencies etc+

1ii2 Such a/7ances 9ill be eligible for refinance. pro7i/e/ the follo9ing re@uirements are complie/ 9ith apart fromthe usual stipulations:

1a2 Banks shoul/ obtain from the e3port house a letter setting out the /etails of the e3port or/er an/ the portionthereof to be e3ecute/ b- the supplier an/ also certif-ing that the e3port house has not obtaine/ an/ 9ill not ask fo

packing cre/it in respect of such portion of the or/er as is to be e3ecute/ b- the supplier+

1b2 Banks shoul/. after mutual consultations an/ taking into account the e3port re@uirements of the t9o parties.

apportion bet9een the t9o i+e+ the E3port House an/ the Supplier. the perio/ of packing cre/it for 9hich theconcessionar- rate of interest is to be charge/+ 8he concessionar- rates of interest on the pre%shipment cre/it 9ill b

a7ailable upto the stipulate/ perio/s in respect of the e3port houseagenc- an/ the supplier put together+

1c2 8he e3port house shoul/ open inlan/ LCs in fa7our of the supplier gi7ing rele7ant particulars of the e3port LC

or or/ers an/ the outstan/ings in the packing cre/it account shoul/ be e3tinguishe/ b- negotiation of bills un/ersuch inlan/ LCs+ If it is incon7enient for the e3port house to open such inlan/ LCs in fa7our of the supplier. the

latter shoul/ /ra9 bills on the e3port house in respect of the goo/s supplie/ for e3port an/ a/Dust packing cre/it

a/7ances from the procee/s of such bills+ In case the bills /ra9n un/er such arrangement are not accompanie/ b-bills of la/ing or other e3port /ocuments. the bank shoul/ obtain through the supplier a certificate from the e3port

house at the en/ of e7er- @uarter that the goo/s supplie/ un/er this arrangement ha7e in fact been e3porte/+ 8he

certificate shoul/ gi7e particulars of the relati7e bills such as /ate. amount an/ the name of the bank through 9hich

the bills ha7e been negotiate/+

1/2 Banks shoul/ obtain an un/ertaking from the supplier that the a/7ance pa-ment. if an-. recei7e/ from the e3pohouse against the e3port or/er 9oul/ be cre/ite/ to the packing cre/it account+

Rupee E3port 4acking Cre/it to Sub%Suppliers

4acking cre/it can be share/ bet9een an E3port *r/er Hol/er 1E*H2 an/ sub%supplier of ra9 materials.

components etc+ of the e3porte/ goo/s as in the case of E*H an/ manufacturer suppliers. subDect to the follo9ing:



1a2 Running Account facilit- is not contemplate/ un/er the scheme+ 8he scheme 9ill co7er the LC or e3port or/er

recei7e/ in fa7our of E3port Houses8ra/ing HousesStar 8ra/ing Houses etc+ or manufacturer e3porters onl-+ 8he

scheme shoul/ be ma/e a7ailable to the e3porters 9ith goo/ track recor/+

1b2 Bankers to an E*H 9ill open an inlan/ LC specif-ing the goo/s to be supplie/ b- the sub%supplier to the E*Hagainst the e3port or/er or LC recei7e/ b- him as a part of the e3port transaction+ *n the basis of such a LC. the

sub%suppliers banker 9ill grant E4C as 9orking capital to enable the sub%supplier to manufacture the components

re@uire/ for the goo/s to be e3porte/+ *n suppl-ing the goo/s. the LC opening bank 9ill pa- to the sub%suppliersbanker against the inlan/ /ocuments recei7e/ on the basis of inlan/ LC+ Such pa-ments 9ill thereafter become the

E4C of the E*H+

1c2 It is upto the E*H to open an- number of LCs for the 7arious components re@uire/ 9ith the appro7al of his

bankerlea/er of consortium of banks 9ithin the o7erall 7alue limit of the or/er or LC recei7e/ b- him+ 8aking intaccount the operational con7enience. it is for the LC opening bank to fi3 the minimum amount for opening such

LCs+ 8he total perio/ of packing cre/it a7aile/ b- the sub%supplier 1s2. in/i7i/uall- or se7erall- an/ the E*H

shoul/ be 9ithin normal c-cle of pro/uction re@uire/ for the e3porte/ goo/s+ Normall-. the total perio/ 9ill becompute/ from the /ate of first /ra9al of packing cre/it b- an- one of the sub%suppliers to the /ate of submission

of e3port /ocuments b- E*H+

1/2 8he E*H 9ill be responsible for e3porting the goo/s as per e3port or/er or o7erseas LC an/ an- /ela- in the

process 9ill subDect him to the penal pro7isions issue/ from time to time+ *nce the sub%supplier makes a7ailable thgoo/s as per inlan/ LC terms to the E*H. his obligation of performance un/er the scheme 9ill be treate/ as

complie/ 9ith an/ the penal pro7isions 9ill not be applicable to him for /ela- b- E*H. if an-+

1e2 8he scheme is an a//itional 9in/o9 besi/es the e3isting s-stem of sharing of packing cre/it bet9een E*H an/

manufacturer in respect of e3porte/ goo/s as /etaile/ in paragraph #+!+# abo7e+ 8he scheme 9ill co7er onl- the fir

stage of pro/uction c-cle+ For example. a manufacturer e3porter 9ill be allo9e/ to open /omestic LC in fa7our ofhis imme/iate suppliers of components etc+ that are re@uire/ for manufacture of e3portable goo/s+ 8he scheme 9il

not be e3ten/e/ to co7er suppliers of ra9 materialscomponents etc+ to such imme/iate suppliers+ In case the E*His merel- a tra/ing house. the facilit- 9ill be a7ailable commencing from the manufacturer to 9hom the or/er has

been passe/ on b- the 8ra/ing House+

1f2 E*sE4SE units suppl-ing goo/s to another E*E4SE unit for e3port purposes are also eligible for

rupee pre%shipment e3port cre/it un/er this scheme+ Ho9e7er. the supplier E*E4SE unit 9ill not be eligiblefor an- post%shipment facilit- as the scheme /oes not co7er sale of goo/s on cre/it terms+

1g2 8he scheme /oes not en7isage an- change in the total @uantum of a/7ance or perio/+ Accor/ingl-. the cre/it

e3ten/e/ un/er the s-stem 9ill be treate/ as e3port cre/it from the /ate of a/7ance to the sub%supplier to the /ate oli@ui/ation b- E*H un/er the inlan/ e3port LC s-stem an/ upto the /ate of li@ui/ation of packing cre/it b-shipment of goo/s b- E*H an/ 9ill be eligible for refinance from RBI b- the respecti7e banks for the appropriate

perio/s+ It has to be ensure/ that no /ouble financing of the same leg of the transaction is in7ol7e/+

1h2 Banks ma- approach the EC<C for a7ailing suitable co7er in respect of such a/7ances+

1i2 8he scheme /oes not en7isage e3ten/ing cre/it b- a sub%supplier to the E*Hmanufacturer an/ thus. the



pa-ment to sub%suppliers has to be ma/e against submission of /ocuments b- LC opening bank treating the

pa-ment as E4C of the E*H+

Rupee 4re%shipment Cre/it to Construction Contractors

1i2 8he packing cre/it a/7ances to the construction contractors to meet their initial 9orking capital re@uirements fo

e3ecution of contracts abroa/ ma- be ma/e on the basis of a firm contract secure/ from abroa/. in a separateaccount. on an un/ertaking obtaine/ from them that the finance is re@uire/ b- them for incurring preliminar-

e3penses in connection 9ith the e3ecution of the contract e+g+. for transporting the necessar- technical staff an/

purchase of consumable articles for the purpose of e3ecuting the contract abroa/. etc+

1ii2 8he a/7ances shoul/ be a/Duste/ 9ithin $'( /a-s of the /ate of a/7ance b- negotiation of bills relating to the

contract or b- remittances recei7e/ from abroa/ in respect of the contract e3ecute/ abroa/+ 8o the e3tent the

outstan/ings in the account are not a/Duste/ in the stipulate/ manner. banks ma- charge normal rate of interest on

such a/7ance+

1iii2 8he e3porters un/ertaking proDect e3port contracts inclu/ing e3port of ser7ices ma- compl- 9ith the

gui/elinesinstructions issue/ b- Reser7e Bank of In/ia. 5oreign E3change )epartment. Central *ffice. Mumbai

from time to time+

E3port of Ser7ices

4re%shipment an/ post%shipment finance ma- be pro7i/e/ to e3porters of all the #'# tra/able ser7ices co7ere/un/er the <eneral Agreement on 8ra/e in Ser7ices 1<A8S2 9here pa-ment for such ser7ices is recei7e/ in free

foreign e3change as state/ at Chapter $ of the 5oreign 8ra/e 4olic- !""0%#&+ All pro7isions of this circular shall

appl- mutatis mutan/is to e3port of ser7ices as the- appl- to e3port of goo/s unless other9ise specifie/+ A list of

ser7ices is gi7en in Appen/i3 #" of HB47#+ 8he financing bank shoul/ ensure that there is no /ouble financing anthe e3port cre/it is li@ui/ate/ 9ith remittances from abroa/+ Banks ma- take into account the track recor/ of the

e3portero7erseas counter part- 9hile sanctioning the e3port cre/it+ 8he statement of e3port recei7ables from suchser7ice pro7i/ers ma- be tallie/ 9ith the statement of pa-ables recei7e/ from the o7erseas part-+

In 7ie9 of the large number of categories of ser7ice e3ports 9ith 7arie/ nature of business as 9ell as in the

en7ironment of progressi7e /eregulation 9here the matters 9ith regar/ to micro management are left to be /eci/e/

b- the in/i7i/ual financing banks. the banks ma- formulate their o9n parameters to finance the ser7ice e3porters+

E3porters of ser7ices @ualif- for 9orking capital e3port cre/it 1pre an/ post shipment2 for consumables. 9ages.supplies etc+

Banks ma- ensure that =

8he proposal is a genuine case of e3port of ser7ices+

8he item of ser7ice e3port is co7ere/ un/er Appen/i3 #" of HB47#+



pro/uction an/ processing are to be integrate/+ 8he pro/ucer has to enter into contract farming 9ith farmers an/ h

to ensure suppl- of @ualit- see/s. pestici/es. micro%nutrients an/ other material to the group of farmers from 9hom

the e3porter 9oul/ be purchasing the pro/ucts as ra9 material for pro/uction of the final pro/ucts for e3port+ 8he<o7ernment. therefore. suggeste/ that such e3port processing units ma- be pro7i/e/ packing cre/it un/er the

e3tant gui/elines for the purpose of procuring an/ suppl-ing inputs to the farmers so that @ualit- inputs area7ailable to them 9hich in turn 9ill ensure that onl- goo/ @ualit- crops are raise/+ 8he e3porters 9ill be able to

purchase import such inputs in bulk. 9hich 9ill ha7e the a/7antages of economies of scale+

Banks ma- treat the inputs supplie/ to farmers b- e3porters as ra9 material for e3port an/ consi/er

sanctioning the lines of cre/ite3port cre/it to processorse3porters to co7er the cost of such inputs re@uire/ b-

farmers to culti7ate such crops to promote e3port of agri pro/ucts+ 8he processor units 9oul/ be able to effect bulk

purchases of the inputs an/ suppl- the same to the farmers as per a pre%/etermine/ arrangement+

Banks ha7e to ensure that the e3porters ha7e ma/e the re@uire/ arrangements 9ith the farmers an/ o7ersea

bu-ers in respect of crops to be purchase/ an/ pro/ucts to be e3porte/ respecti7el-+ 8he financing banks 9ill also

appraise the proDects in agri e3port ones an/ ensure that the tie%up arrangements are feasible an/ proDects 9oul/take off 9ithin a reasonable perio/ of time+

8he- are also to monitor the en/%use of fun/s. 7i+ /istribution of the inputs b- the e3porters to the farmers

for raising the crops as per arrangements ma/e b- the e3portermain processor units+

8he- ha7e to further ensure that the final pro/ucts are e3porte/ b- the processorse3porters as per the term

an/ con/itions of the sanction in or/er to li@ui/ate the pre%shipment cre/it as per e3tant instructions+

POST-S2PME"T RUPEE E$PORT CRE%T

)efinition:

4ost%shipment Cre/it means an- loan or a/7ance grante/ or another cre/it pro7i/e/ b- a bank to an e3porter of

goo/s ser7ices from In/ia from the /ate of e3ten/ing cre/it after shipment of goo/s ren/ering of ser7ices to the

/ate of realisation of e3port procee/s as per the perio/ of realiation prescribe/ b- 5E). an/ inclu/es an- loan ora/7ance grante/ to an e3porter. in consi/eration of. or on the securit- of an- /ut- /ra9back allo9e/ b- the

<o7ernment from time to time+ As per the current instructions of 5E). the perio/ prescribe/ for realisation of

e3port procee/s is #! months from the /ate of shipment+

8-pes of 4ost%shipment Cre/its:

4ost%shipment a/7ance can mainl- take the form of %

1i2 E3port bills purchase//iscounte/negotiate/+

1ii2 A/7ances against bills for collection+

1iii2 A/7ances against /ut- /ra9back recei7able from <o7ernment+

Li@ui/ation of 4ost%shipment Cre/it:



4ost%shipment cre/it is to be li@ui/ate/ b- the procee/s of e3port bills recei7e/ from abroa/ in respect of goo/s

e3porte/ ser7ices ren/ere/+ 5urther. subDect to mutual agreement bet9een the e3porter an/ the banker it can also

be repai/ prepai/ out of balances in E3change Earners 5oreign Currenc- Account 1EE5C AC2 as also fromprocee/s of another unfinance/ 1collection2 bills+ Such a/Duste/ e3port bills shoul/ ho9e7er continue to be

follo9e/ up for realiation of the e3port procee/s an/ 9ill continue to be reporte/ in the *S statement+

In or/er to re/uce the cost to e3porters 1i+e+ interest cost on o7er/ue e3port bills2. e3porters 9ith o7er/ue e3port

bills ma- also e3tinguish their o7er/ue post shipment rupee e3port cre/it from their rupee resources+ Ho9e7er. thecorrespon/ing <R form 9ill remain outstan/ing an/ the amount 9ill be sho9n outstan/ing in *S statement+ 8he

e3porterFs liabilit- for realisation 9oul/ continue till the e3port bill is realise/+

Rupee Post-s0ipment Export Credit

4erio/

i+ In the case of /eman/ bills. the perio/ of a/7ance shall be the Normal 8ransit 4erio/ 1N842 as specifie/ b-5E)AI+

ii+ In case of usance bills. cre/it can be grante/ for a ma3imum /uration of $'( /a-s from /ate of shipment

inclusi7e of Normal 8ransit 4erio/ 1N842 an/ grace perio/. if an-+ Ho9e7er. banks shoul/ closel- monitor the nee

for e3ten/ing post%shipment cre/it upto the permissible perio/ of $'( /a-s an/ the- shoul/ persua/e the e3portersto realise the e3port procee/s 9ithin a shorter perio/+

3"ormal transit period3 means the a7erage perio/ normall- in7ol7e/ from the /ate of negotiation purchase

/iscount till the receipt of bill procee/s in the Nostro account of the bank concerne/. as prescribe/ b- 5E)AI from

time to time+ It is not to be confuse/ 9ith the time taken for the arri7al of goo/s at o7erseas /estination+

iv( *n overdue 5ill

in the case of a /eman/ bill. is a bill 9hich is not pai/ before the e3pir- of the normal transit perio/. plus

grace perio/ an/

in the case of a usance bill. is a bill 9hich is not pai/ on the /ue /ate+

Interest Rate Structure

Interest rate structure on post%shipment cre/it an/ instructions in regar/ thereto are /etaile/ in paragraph &+

A/7ances against n/ra9n Balances on E3port Bills

In respect of e3port of certain commo/ities 9here e3porters are re@uire/ to /ra9 the bills on the o7erseas bu-er

upto 0" to 0? percent of the 5*B 7alue of the contract. the resi/uar- amount being un/ra9n balance is pa-able b-

the o7erseas bu-er after satisf-ing himself about the @ualit- @uantit- of goo/s+



4a-ment of un/ra9n balance is contingent in nature+ Banks ma- consi/er granting a/7ances against un/ra9n

balances at concessional rate of interest base/ on their commercial Du/gement an/ the track recor/ of the bu-er+

Such a/7ances are. ho9e7er. eligible for concessional rate of interest for a ma3imum perio/ of 0" /a-s onl- to thee3tent these are repai/ b- actual remittances from abroa/ an/ pro7i/e/ such remittances are recei7e/ 9ithin #?"

/a-s after the e3pir- of N84 in the case of /eman/ bills an/ /ue /ate in the case of usance bills+ 5or the perio/be-on/ 0" /a-s. the rate of interest specifie/ for the categor- E3port Cre/it Not *ther9ise Specifie/ 1ECN*S2 at

post%shipment stage ma- be charge/+

A/7ances against Retention Mone-

1i2 In the case of turnke- proDectsconstruction contracts. progressi7e pa-ments are ma/e b- the o7erseas emplo-er

in respect of ser7ices segment of the contract. retaining a small percentage of the progressi7e pa-ments as retention

mone- 9hich is pa-able after e3pir- of the stipulate/ perio/ from the /ate of the completion of the contract. subDecto obtention of certificate1s2 from the specifie/ authorit-+

1ii2 Retention mone- ma- also be sometimes stipulate/ against the supplies portion in the case of turn%ke- proDectsIt ma- like%9ise arise in the case of sub%contracts+ 8he pa-ment of retention mone- is contingent in nature as it is

/effere/ liabilit-+

1i72 8he follo9ing gui/elines shoul/ be follo9e/ in regar/ to grant of a/7ances against retention mone-:

No a/7ances ma- be grante/ against retention mone- relating to ser7ices portion of the contract+

E3porters ma- be a/7ise/ to arrange. as far as possible. pro7ision of suitable guarantees. instea/ of retentio

Banks ma- consi/er. on a selecti7e basis. granting of a/7ances against retention mone- relating to thesupplies portion of the contract taking into account. among others. the sie of the retention mone- accumulate/. itsimpact on the li@ui/ fun/s position of the e3porter an/ the past performance regar/ing the timel- receipt of

retention mone-+

8he pa-ment of retention mone- ma- be secure/ b- LC or Bank <uarantee 9here possible+

Where the retention mone- is pa-able 9ithin a perio/ of one -ear from the /ate of shipment. accor/ing tothe terms of the contract. banks shoul/ charge prescribe/ rate of interest upto a ma3imum perio/ of 0" /a-s+ 8he

rate of interest prescribe/ for the categor- ECN*S at post%shipment stage ma- be charge/ for the perio/ be-on/

0" /a-s+

Where the retention mone- is pa-able after a perio/ of one -ear from the /ate of shipment. accor/ing to thterms of the contract an/ the correspon/ing a/7ance is e3ten/e/ for a perio/ e3cee/ing one -ear. it 9ill be treate/

as post%shipment cre/it gi7en on /eferre/ pa-ment terms e3cee/ing one -ear. an/ the bank is free to /eci/e the rat

of interest+

A/7ances against retention mone- 9ill be eligible for concessional rate of interest onl- to the e3tent thea/7ances are actuall- repai/ b- remittances recei7e/ from abroa/ relating to the retention mone- an/ pro7i/e/ suc



pa-ments are recei7e/ 9ithin #?" /a-s from the /ue /ate of pa-ment of the retention mone-. accor/ing to the term

of the contract

E3port on Consignment Basis

<eneral

E3port on consignment basis len/s scope for a lot of misuse in the matter of repatriation of e3port procee/s

8herefore. e3port on consignment basis shoul/ be at par 9ith e3ports on outright sale basis on cash terms inmatters regar/ing the rate of interest to be charge/ b- banks on post%shipment cre/it+ 8hus. in the case of e3ports o

consignment basis. e7en if e3tension in the perio/ be-on/ $'( /a-s is grante/ b- the 5oreign E3change )epartme

15E)2 for repatriation of e3port procee/s. banks 9ill charge appropriate prescribe/ rate of interest onl- upto thenotional /ue /ate 1/epen/ing upon the tenor of the bills2. subDect to a ma3imum of $'( /a-s+

E3port of precious an/ semi%precious stones

4recious an/ semi%precious stones. etc+ are e3porte/ mostl- on consignment basis an/ the e3porters are not in a

position to li@ui/ate pre%shipment cre/it account 9ith remittances recei7e/ from abroa/ 9ithin a perio/ of $'( /a-from the /ate of a/7ance+ Banks ma-. therefore. a/Dust packing cre/it a/7ances in the case of consignment e3ports

as soon as e3port takes place. b- transfer of the outstan/ing balance to a special 1post%shipment2 account 9hich in

turn. shoul/ be a/Duste/ as soon as the relati7e procee/s are recei7e/ from abroa/ but not later than $'( /a-s from

the /ate of e3port or such e3ten/e/ perio/ as ma- be permitte/ b- 5oreign E3change )epartment. Reser7e Bank oIn/ia+ Balance in the special 1post%shipment2 account 9ill not be eligible for refinance from RBI+

E3tension of realiation of e3port procee/s for perio/ upto #!#( months

RBI 15E)2 has been allo9ing in /eser7ing cases. on application b- in/i7i/ual e3porters 9ith satisfactor- track

recor/. a longer perio/ upto #! months from the /ate of shipment for realiation of procee/s of e3ports in case offollo9ing categories of e3porters:

Consignment E3ports to CIS an/ East European Countries+

Consignment e3ports to Russian 5e/eration against repa-ment of State Cre/it in rupees+

E3porters 9ho ha7e been certifie/ as Status Hol/er in terms of 5oreign 8ra/e 4olic-+

#"" per cent E3port *riente/ nits an/ units set up un/er Electronic Har/9are 8echnolog- 4ark. Soft9are8echnolog- 4ark an/ Bio%8echnolog- 4ark Schemes+

5E) 7i/e A4 1)IR series2 circular No+&" /ate/ No7ember #. !"## has e3ten/e/ the perio/ of realiation an/

repatriation of e3port procee/s from ' months to #! months from the /ate of e3port. for a further perio/ upto

September $". !"#!+



5urther in case of E3ports through the Warehouse=cum%)ispla- Centres abroa/. realisation of e3port procee/s has

been fi3e/ upto #( months from the /ate of shipment+

Banks ma- e3ten/ post%shipment cre/it to such e3porters for a longer perio/ ab%initio+ Accor/ingl-. the interest rat

upto #?" /a-s from the /ate of a/7ance 9ill be the rate applicable for usance bills for perio/ upto #?" /a-s+ Be-on#?" /a-s from the /ate of shipment. banks are free to /eci/e on the rate of interest+ In case the sale procee/s are no

realise/ 9ithin the sanctione/ perio/. the higher rate of interest as applicable for ECN*S%post%shipment 9ill appl

for the entire perio/ be-on/ #?" /a-s+

Refinance to banks against e3port cre/it 9oul/ ho9e7er. be a7ailable from RBI. upto a perio/ of #?" /a-s at post%shipment stage as per gui/elines issue/ b- RBI 1M4)2+

E3port of <oo/s for E3hibition an/ Sale

Banks ma- pro7i/e finance to e3porters against goo/s sent for e3hibition an/ sale abroa/ in the normal course in

the first instance. an/ after the sale is complete/. allo9 the benefit of the prescribe/ rate of interest on sucha/7ances. both at the pre%shipment stage an/ at the post%shipment stage. upto the stipulate/ perio/s. b- 9a- of a

rebate+ Such a/7ances shoul/ be gi7en in separate accounts+

4ost%shipment Cre/it on )eferre/ 4a-ment 8erms

Banks ma- grant post%shipment cre/it on /eferre/ pa-ment terms for a perio/ e3cee/ing one -ear. in respect of

e3port of capital an/ pro/ucer goo/s as specifie/ b- RBI 15E)2 from time to time+

Post-s0ipment *dvances against %uty %ra:5ac4 Entitlements

!+(+# Banks ma- grant post%shipment a/7ances to e3porters against their /ut- /ra9back entitlements an/ co7ere/b- EC<C guarantee as pro7isionall- certifie/ b- Customs Authorities pen/ing final sanction an/ pa-ment+

!+(+! 8he a/7ance against /ut- /ra9back recei7ables can also be ma/e a7ailable to e3porters against e3port

promotion cop- of the shipping bill containing the E<M Number issue/ b- the Customs )epartment+ Wherenecessar-. the financing bank ma- ha7e its lien note/ 9ith the /esignate/ bank an/ arrangements ma- be ma/e 9i

the /esignate/ bank to transfer fun/s to the financing bank as an/ 9hen /ut- /ra9back is cre/ite/ b- the Customs

!+(+$ 8hese a/7ances grante/ against /ut- /ra9back entitlements 9oul/ be eligible for concessional rate of interes

an/ refinance from RBI upto a ma3imum perio/ of 0" /a-s from the /ate of a/7ance+

EC!C ;0ole Turnover Post-s0ipment !uarantee Sc0eme

!+'+# 8he Whole 8urno7er 4ost%shipment <uarantee Scheme of the E3port Cre/it <uarantee Corporation of In/ia

Lt/+ 1EC<C2 pro7i/es protection to banks against non%pa-ment of post%shipment cre/it b- e3porters+ Banks ma-. i

the interest of e3port promotion. consi/er opting for the Whole 8urno7er 4ost%shipment 4olic-+ 8he salient featureof the scheme ma- be obtaine/ from EC<C+



4rime Len/ing Rates 1B4LRs2 of in/i7i/ual banks a7ailable to their /omestic borro9ers+ Banks ha/. therefore.

free/om to /eci/e the actual rates to be charge/ 9ithin the specifie/ ceilings+ 5urther. the ceiling interest rates for

/ifferent time buckets un/er an- categor- of e3port cre/it shoul/ be on the basis of the B4LR rele7ant for the entirtenor of e3port cre/it+

8he Base Rate S-stem is applicable 9ith effect from ,ul- #. !"#"+ Accor/ingl-. interest rates applicable for all

tenors of rupee e3port cre/it a/7ances are at or abo7e Base Rate+

ECN*S

ECN*S means E3port Cre/it Not *ther9ise Specifie/ in the Interest Rate structure for 9hich banks are free to/eci/e the rate of interest keeping in 7ie9 the Base RateB4LR gui/elines+ Banks shoul/ not charge penal interest

in respect of ECN*S+

nterest Rate on Rupee Export Credit

Interest Rate Structure

8he Base Rate S-stem is applicable 9ith effect from ,ul- #. !"#"+ Accor/ingl-. interest rates applicable for alltenors of rupee e3port cre/it a/7ances sanctione/ on or after ,ul- "#. !"#" are at or abo7e Base Rate+

Interest Rates un/er the B4LR s-stem effecti7e upto <une => ?>1> 9ill be Gnot e3cee/ing B4LR minus !+(

percentage points per annumF for the follo9ing categories of E3port Cre/it:

Categories o, Export Credit

#+ Pre-s0ipment Credit 8,rom t0e date o, advance9

1a2 pto !>" /a-s

1b2 Against incenti7es recei7able from <o7ernment co7ere/ b- EC<C <uarantee upto 0"

/a-s

!+ Post-s0ipment Credit 8,rom t0e date o, advance9

1a2 *n /eman/ bills for transit perio/ 1as specifie/ b- 5E)AI2



1b2 sance bills 1for total perio/ comprising usance perio/ of e3port bills. transit perio/as specifie/ b- 5E)AI. an/ grace perio/. 9here7er applicable2

i2 pto #?" /a-sii2 pto $'( /a-s for e3porters un/er the <ol/ Car/ Scheme+

c2 Against incenti7es recei7able from <o7t+ 1co7ere/ b- EC<C <uarantee2 upto 0" /a-s

/2 Against un/ra9n balances 1upto 0" /a-s2

e2 Against retention mone- 1for supplies portion onl-2 pa-able 9ithin one -ear from the

/ate of shipment 1upto 0" /a-s2

+P.R: Benchmark 4rime Len/ing Rate+"ote@ #+ Since these are ceiling rates. banks 9oul/ be free to charge an- rate belo9 the

ceiling rates+

!+ Interest rates for the abo7e%mentione/ categories of e3port cre/it be-on/ the tenors as prescribe/ abo7e are /eregulate/ an/ banks are free to /eci/e the rate of interest. keeping in

7ie9 the B4LR an/ sprea/ gui/elines+

&+!+! Application of Interest Rates

8he re7ision in interest rates ma/e from time to time is ma/e applicable to fresh a/7ances as also to the e3isting

a/7ances for the remaining perio/ of cre/it. unless other9ise specifie/+

Interest on 4re%shipment Cre/it

i+ Banks shoul/ charge interest on pre%shipment cre/it upto !>" /a-s at the rate to be /eci/e/ b- the bank 9ithin thceiling rate arri7e/ at on the basis of B4LR rele7ant for the entire tenor of the e3port cre/it un/er the categor-+ 8h

perio/ of cre/it is to be reckone/ from the /ate of a/7ance+ 8his gui/eline is applicable upto ,une $". !"#"+ 8he

Base Rate S-stem is applicable from ,ul- #. !"#" an/ accor/ingl- interest rates applicable for all tenors of rupeee3port cre/it a/7ances sanctione/ on or after ,ul- "#. !"#" are at or abo7e Base Rate+

ii+ If pre%shipment a/7ances are not li@ui/ate/ from procee/s of bills on purchase. /iscount. etc+ on submission of

e3port /ocuments 9ithin $'" /a-s from the /ate of a/7ance. or as in/icate/ at para #+#+& 1i2. the a/7ances 9ill

cease to @ualif- for prescribe/ rate of interest for e3port cre/it ab initio+

iii+ In cases 9here packing cre/it is not e3ten/e/ be-on/ the original perio/ of sanction an/ e3ports take place afte



the e3pir- of sanctione/ perio/ but 9ithin a perio/ of $'" /a-s from the /ate of a/7ance. e3porter 9oul/ be eligib

for concessional cre/it onl- upto the sanctione/ perio/+ 5or the balance perio/. interest rate prescribe/ for ECN*

at the pre%shipment stage 9ill appl-+ 5urther. the reasons for non%e3tension of the perio/ nee/ to be a/7ise/ b-banks to the e3porter+

i7+ In cases 9here e3ports /o not take place 9ithin $'" /a-s from the /ate of pre%shipment a/7ance. such cre/its

9ill be terme/ as ECN*S an/ banks ma- charge interest rate prescribe/ for ECN*S pre%shipment from the 7er-

first /a- of the a/7ance+

7+ If e3ports /o not materialise at all. banks shoul/ charge on relati7e packing cre/it /omestic len/ing rate pluspenal rate of interest. if an-. to be /eci/e/ b- the banks on the basis of a transparent polic- appro7e/ b- their

Interest on 4ost%shipment Cre/it

Earl- pa-ment of e3port bills

i+ In the case of a/7ances against /eman/ bills. if the bills are realise/ before the e3pir- of the normal transit perio1N842. interest at the prescribe/ rate shall be charge/ from the /ate of a/7ance till the /ate of realisation of such

bills+ 8he /ate of realisation of /eman/ bills for this purpose 9oul/ be the /ate on 9hich the procee/s get cre/ite/

to the banks Nostro accounts+

ii+ In the case of a/7ancecre/it against usance e3port bills. interest at prescribe/ rate ma- be charge/ onl- upto thenotionalactual /ue /ate or the /ate on 9hich e3port procee/s get cre/ite/ to the bankFs Nostro account abroa/.

9hiche7er is earlier. irrespecti7e of the /ate of cre/it to the borro9erse3porters account in In/ia+ In cases 9here

the correct /ue /ate can be establishe/ beforeimme/iatel- after a7ailment of cre/it /ue to acceptance b- o7erseas

bu-er or other9ise. prescribe/ interest can be applie/ onl- upto the actual /ue /ate. irrespecti7e of 9hate7er ma- bthe notional /ue /ate arri7e/ at. pro7i/e/ the actual /ue /ate falls before the notional /ue /ate+

iii+ Where interest for the entire N84 in the case of /eman/ bills or upto notionalactual /ue /ate in the case of

usance bills as state/ at 1b2 abo7e. has been collecte/ at the time of negotiationpurchase/iscount of bills. thee3cess interest collecte/ for the perio/ from the /ate of realisation to the last /ate of N84notional /ue /ateactual

/ue /ate shoul/ be refun/e/ to the borro9ers+

*7er/ue E3port Bills un/er the B4LR s-stem

i+ In case of e3port bills. the rate of interest /eci/e/ b- the bank 9ithin the ceiling rate stipulate/ b- RBI 9ill appl-

upto the /ue /ate of the bill 1upto N84 in case of /eman/ bill an/ specifie/ perio/ in case of usance bills2+

ii+ 5or the perio/ be-on/ the /ue /ate 7i+ for the o7er/ue perio/. the prescribe/ interest rate as applicable to post%

shipment rupee e3port cre/it 1not e3cee/ing B4LR minus !+( percentage points2 ma- be applie/ upto #?" /a-s

from the /ate of a/7ance. till further notice+

Interest on 4ost%shipment Cre/it A/Duste/ from Rupee Resources



but e3clu/ing man%ma/e fibre an/ han/icrafts. the <o7t+ pro7i/e/ a//itional sub7ention of ! per cent 1in a//ition

to the ! per cent offere/ earlier2 in pre%shipment cre/it for #?" /a-s an/ post%shipment cre/it for 0" /a-s 1for carp

sector. the pre%shipment cre/it 9oul/ be a7ailable for !>" /a-s2+ Accor/ingl-. banks 9oul/ charge interest rate note3cee/ing B4LR minus &+( '+( per cent. as applicable. on pre%shipment cre/it upto #?" /a-s an/ post%shipment

cre/it upto 0" /a-s on the outstan/ing amount for the perio/ April #. !""> to September $". !""?+ Ho9e7er. thetotal sub7ention 9ill be subDect to the con/ition that the interest rate. after sub7ention 9ill not fall belo9 > per cen

9hich is the rate applicable to the agriculture sector un/er priorit- sector len/ing+

In )ecember !""?. the <o7ernment of In/ia announce/ the secon/ scheme of interest sub7ention of ! percentage

points for certain emplo-ment oriente/ e3port sectors 7i+ 8e3tiles 1inclu/ing Han/loom2. han/icrafts. carpets.

leather. gems 6 De9eller-. marine pro/ucts an/ Small an/ Me/ium Enterprises for the perio/ )ecember #. !""? to

September $". !""0+ Accor/ingl-. banks 9oul/ charge interest rate not e3cee/ing B4LR minus &+( per cent on preshipment cre/it upto !>" /a-s an/ post%shipment cre/it upto #?" /a-s on the outstan/ing amount for the perio/

)ecember #. !""? to September $". !""0+ 8his scheme 9as subse@uentl- e3ten/e/ upto March $#. !"#"+

In April !"#". the <o7ernment of In/ia announce/ the thir/ scheme of interest rate sub7ention of ! percentagepoints for certain emplo-ment oriente/ e3port sectors 7i+ Han/icrafts. Carpets. Han/looms an/ Small 6 Me/ium

Enterprises 1SME2 for the perio/ April #. !"#" to March $#. !"##. subDect to the con/ition that banks 9ill charge

interest rate not e3cee/ing B4LR minus &+( percentage points on pre%shipment cre/it upto !>" /a-s an/ post%

shipment cre/it upto #?" /a-s on the outstan/ing amount for the abo7e perio/ to these sectors+ Ho9e7er. the totalsub7ention is subDect to the con/ition that the interest rate. after sub7ention 9ill not fall belo9 > per cent. 9hich is

the rate applicable to the short term crop loan un/er priorit- sector len/ing+

In August !"#". the <o7ernment of In/ia /eci/e/ to e3ten/ interest rate sub7ention of ! per cent on rupee e3port

cre/it 9ith effect from April #. !"#" to March $#. !"## on the same terms an/ con/itions to certain a//itionalsectors 7i+ Leather an/ Leather Manufactures. ,ute Manufacturing inclu/ing 5loor co7ering. Engineering <oo/s

an/ 8e3tiles+

In *ctober !"##. the <o7ernment of In/ia announce/ the fourth scheme of interest rate sub7ention of ! percentagepoints for certain emplo-ment oriente/ e3port sectors 7i+ Han/icrafts. Han/looms. Carpets an/ SMEs+

In ,une !"#!. the <o7ernment of In/ia announce/ the fifth scheme of interest rate sub7ention of ! percentage

points for certain emplo-ment oriente/ e3port sectors 7i Han/icrafts. Carpet. Han/looms. SMEs. Rea/-ma/e

<arments. 4rocesse/ Agriculture 4ro/ucts. Sport <oo/s an/ 8o-s+

In ,anuar- !"#$. <o7ernment of In/ia announce/ the si3th scheme of interest rate sub7ention of ! percentagepoints on the same terms an/ con/itions for Han/icrafts. Carpet. Han/looms. Small 6 Me/ium Enterprises.

Rea/-ma/e <arments. 4rocesse/ Agriculture <oo/s. Sports <oo/s an/ 8o-s for the perio/ April #. !"#$ to March$#. !"#&+ 8he scheme 9as also 9i/ene/ to inclu/e #$& tariff lines of engineering pro/ucts 8*nnex A9 on the samterms an/ con/itions for the perio/ ,anuar- #. !"#$ to March $#. !"#&+

Later in Ma- !"#$. the <o7ernment e3ten/e/ the ! per cent interest rate sub7ention scheme to a list of another #"

tariff lines in engineering goo/s sector 8*nnex B9 1in a//ition to the e3isting #$& tariff lines mentione/ abo7e2 an' tariff lines of te3tile goo/ sector 8*nnex 9 on the same terms an/ con/itions for the perio/ April #. !"#$ to



March $#. !"#&+

With the change o7er to the Base Rate S-stem. the interest rates applicable for all tenors of rupee e3port cre/it

a/7ances 9ith effect from ,ul- #. !"#" are at or abo7e Base Rate in respect of all freshrene9e/ a/7ances as

a/7ise/ 7i/e circular )B*)+)ir+1E3p2+BC+No+#"!"&+"!+""#!""0%#" /ate/ Ma- '. !"#"+ Accor/ingl-. banksshoul/ re/uce the interest rate chargeable to the e3porters as per the Base Rate S-stem in the abo7e mentione/

sectors eligible for e3port cre/it sub7ention b- the amount of sub7ention a7ailable. subDect to a floor rate of >4er

cent+ If. as a conse@uence. the interest rate charge/ to e3porters goes belo9 the Base Rate. such len/ing 9ill not beconstrue/ to be a 7iolation of the Base Rate gui/elines+

Banks are re@uire/ to completel- pass on the benefit of interest sub7ention. as applicable. to the eligible e3porters

upfront an/ submit the claims to RBI for reimbursement /ul- certifie/ b- the e3ternal au/itor+ 8he sub7ention

9oul/ be reimburse/ b- RBI on the basis of @uarterl- claims submitte/ b- the banks in the prescribe/ format+

P*RT-+

E$PORT CRE%T " FORE!" CURRE"C#

Pre-s0ipment Credit in Foreign Currency 8PCFC9

<eneral

With a 7ie9 to making cre/it a7ailable to e3porters at internationall- competiti7e rates. authorise/ /ealers ha7e

been permitte/ to e3ten/ pre%shipment Cre/it in 5oreign Currenc- 14C5C2 to e3porters for /omestic an/ importe/inputs of e3porte/ goo/s at LIB*RER* LIB*RERIB*R relate/ rates of interest as /etaile/ belo9:

Scheme

i+ 8he scheme is an a//itional 9in/o9 for pro7i/ing pre%shipment cre/it to In/ian e3porters at internationall-

competiti7e rates of interest+ It 9ill be applicable to onl- cash e3ports+ 8he instructions 9ith regar/ to Rupee E3poCre/it appl- to e3port cre/it in 5oreign Currenc- also mutatis mutan/is. unless other9ise specifie/+

ii+ 8he e3porter 9ill ha7e the follo9ing options to a7ail of e3port finance:

a+ to a7ail of pre%shipment cre/it in rupees an/ then the post%shipment cre/it either in rupees or /iscounting

re/iscounting of e3port bills un/er EBR Scheme mentione/ in paragraph '+#+

b+ to a7ail of pre%shipment cre/it in foreign currenc- an/ /iscount re/iscounting of the e3port bills in foreign

currenc- un/er EBR Scheme+

c+ to a7ail of pre%shipment cre/it in rupees an/ then con7ert /ra9als into 4C5C at the /iscretion of the bank+

iii+ Choice of currenc-

8he facilit- ma- be e3ten/e/ in one of the con7ertible currencies 7i+ S )ollars. 4oun/ Sterling. ,apanes



;en. Euro. etc+

8o enable the e3porters to ha7e operational fle3ibilit-. it 9ill be in or/er for banks to e3ten/ 4C5C in one

con7ertible currenc- in respect of an e3port or/er in7oice/ in another con7ertible currenc-+ For example. an

e3porter can a7ail of 4C5C in S )ollar against an e3port or/er in7oice/ in Euro+ 8he risk an/ cost of crosscurrenc- transaction 9ill be that of the e3porter+

Banks are permitte/ to e3ten/ 4C5C for e3ports to AC countries+

8he applicable benefit to the e3porters 9ill accrue onl- after the realisation of the e3port bills or 9hen the

resultant e3port bills are re/iscounte/ on G9ithout recourseF basis+

Source of fun/s for banks

i+ 8he foreign currenc- balances a7ailable 9ith the bank in E3change Earners 5oreign Currenc- 1EE5C2 Accounts

Resi/ent 5oreign Currenc- Accounts R5C1)2 an/ 5oreign Currenc- 1Non%Resi/ent2 Accounts 1Banks2 Schemecoul/ be utilise/ for financing the pre%shipment cre/it in foreign currenc-+

ii+ Banks are also permitte/ to utilise the foreign currenc- balances a7ailable un/er Escro9 Accounts an/ E3porter5oreign Currenc- Accounts for the purpose. subDect to ensuring that the re@uirements of fun/s b- the account

hol/ers for permissible transactions are met an/ the limit prescribe/ for maintaining ma3imum balance in the

account un/er broa/ base/ facilit- is not e3cee/e/+

iii+ 5oreign currenc- borro9ings

In a//ition. banks ma- arrange for borro9ings from abroa/+ Banks ma- negotiate lines of cre/it 9ith

o7erseas banks for the purpose of grant of 4C5C to e3porters 9ithout the prior appro7al of the RBI. pro7i/e/ therate of interest on the borro9ing /oes not e3cee/ !(" basis points from No7ember #(. !"## 1#"" basis points upto

No7ember #&. !"##2 o7er si3 months LIB*RER* LIB*RERIB*R+

Banks shoul/ /ra9 on the line of cre/it arrange/ onl- to the e3tent of loans grante/ b- them to the e3porteun/er the 4C5C+ Ho9e7er. 9here the o7erseas bank making a7ailable the line of cre/it stipulates a minimum

amount for /ra9als 9hich shoul/ not be 7er- large. the small unutilise/ portion ma- be manage/ b- the bank

9ithin its foreign e3change position an/ Aggregate <ap Limit 1A<L2+ Similarl-. an- pre%pa-ment b- the e3porterma- also be taken 9ithin the foreign e3change position an/ A<L limits+

Banks ma- a7ail of lines of cre/it from other banks in In/ia if the- are not in a position to raise loans from

abroa/ on their o9n. subDect to the con/ition that ultimate cost to the e3porter shoul/ not e3cee/ $(" basis pointsfrom No7ember #(. !"## to Ma- &. !"#! 1!"" basis points upto No7ember #&. !"##2 abo7e LIB*R ER* LIB* ERIB*R. pro7i/e/ the bank /oes not ha7e a branch abroa/+ 8he sprea/ bet9een the borro9ing an/ len/ing

bank is left to the /iscretion of the banks concerne/+

Banks are free to /etermine the interest rates on e3port cre/it in foreign currenc- 9ith effect from Ma- (. !"#!+

i7+ In case the e3porters ha7e arrange/ for the suppliersF cre/it for procuring importe/ inputs. the 4C5C facilit- ma



be e3ten/e/ b- the banks onl- for the purpose of financing /omestic inputs for e3ports+

7+ Banks are also permitte/ to use foreign currenc- fun/s borro9e/ in terms of para &+!1i2 of Notification No+

5EMA+$!""" RB /ate/ Ma- $. !""" as also foreign currenc- fun/s generate/ through bu-%sell s9aps in the

/omestic fore3 market for granting pre%shipment cre/it in 5oreign Currenc- 14C5C2 subDect to a/herence toAggregate <ap Limit 1A<L2 prescribe/ b- RBI 15E)2+

Sprea/

i+ 8he sprea/ for pre%shipment cre/it in foreign currenc- 9ill be relate/ to the international reference rate such as

LIB*RER* LIB*RERIB*R 1' months2+ 8he len/ing rate to the e3porter shoul/ not e3cee/ $(" basis pointsfrom No7ember #(. !"## to Ma- &. !"#! 1!"" basis points upto No7ember #&. !"##2 abo7e LIB*R ER* LIB*

ERIB*R. e3clu/ing 9ithhol/ing ta3+ Banks are free to /etermine the interest rates on e3port cre/it in foreign

currenc- 9ith effect from Ma- (. !"#!+

ii+ LIB*R ER* LIB*R ERIB*R rates are normall- a7ailable for stan/ar/ perio/ of #. !. $. ' an/ #! monthBanks ma- @uote rates on the basis of stan/ar/ perio/ if 4C5C is re@uire/ for perio/s less than ' months+ Ho9e7e

9hile @uoting rates for non%stan/ar/ perio/. banks shoul/ ensure that the rate @uote/ is belo9 the ne3t upper

stan/ar/ perio/ rate+

iii+ Banks ma- collect interest on 4C5C at monthl- inter7als against sale of foreign currenc- or out of balances inEE5C accounts or out of /iscounte/ 7alue of the e3port bills if 4C5C is li@ui/ate/+

4erio/ of cre/it

i+ 8he 4C5C 9ill be a7ailable for a ma3imum perio/ of $'" /a-s+ An- e3tension of the cre/it 9ill be subDect to the

same terms an/ con/itions as applicable for e3tension of rupee packing cre/it an/ it 9ill also ha7e a//itionalinterest cost of !"" basis points abo7e the rate for the initial perio/ of #?" /a-s pre7ailing at the time of e3tension

ii+ 5urther e3tension 9ill be subDect to the terms an/ con/itions fi3e/ b- the bank concerne/ an/ if no e3port takes

place 9ithin $'" /a-s. the 4C5C 9ill be a/Duste/ at 8+8+ selling rate for the currenc- concerne/+ In such cases.

banks can arrange to remit foreign e3change to repa- the loan or line of cre/it raise/ abroa/ an/ interest 9ithoutprior permission of RBI+

iii+ 5or e3tension of 4C5C 9ithin #?" /a-s. banks are permitte/ to e3ten/ on a fi3e/ roll o7er basis of the principa

amount at the applicable LIB*RER* LIB*RERIB*R rate for e3ten/e/ perio/ plus permitte/ margin of $("

basis points from No7ember #(. !"## to Ma- &. !"#! 1!"" basis points upto No7ember #&. !"##2 abo7e LIB*R

ER* LIB*R ERIB*R+


)isbursement of 4C5C

i+ In case full amount of 4C5C or part thereof is utilise/ to finance /omestic input. banks ma- appl- appropriate



spot rate for the transaction+

ii+ As regar/s the minimum lots of transactions. it is left to the operational con7enience of banks to stipulate the

minimum lots taking into account the a7ailabilit- of their o9n resources+ Ho9e7er. 9hile fi3ing the minimum lot.

banks ma- take into account the nee/s of their small customers also+

iii+ Banks shoul/ take steps to streamline their proce/ures so that no separate sanction is nee/e/ for 4C5C once thpacking cre/it limit has been authorise/ an/ the /isbursement is not /ela-e/ at the branches+

Li@ui/ation of 4C5C Account

<eneral

4C5C can be li@ui/ate/ out of procee/s of e3port /ocuments on their submission for /iscountingre/iscounting

un/er the EBR Scheme /etaile/ in para '+# or b- grant of foreign currenc- loans 1)4 Bills2+ SubDect to mutual

agreement bet9een the e3porter an/ the banker. it can also be repai/ prepai/ out of balances in EE5C Ac as alsofrom rupee resources of the e3porter to the e3tent e3ports ha7e actuall- taken place+

4acking cre/it in e3cess of 5+*+B+ 7alue

In certain cases. 17i+ agro base/ pro/ucts like H4S groun/nut. /efatte/ 6 /eoile/ cakes. tobacco. pepper.car/amom. cashe9 nuts. ntc+2 9here packing cre/it re@uire/ is in e3cess of 5*B 7alue. 4C5C 9oul/ be a7ailable

onl- for e3portable portion of the pro/uce+

Substitution of or/ercommo/it-

Repa-ment li@ui/ation of 4C5C coul/ be 9ith e3port /ocuments relating to another or/er co7ering the same oran- other commo/it- e3porte/ b- the e3porter or amount of balance in the EE5C Account+ While allo9ing

substitution of contract in this 9a-. banks shoul/ ensure that it is commerciall- necessar- an/ una7oi/able+ Banks

shoul/ also satisf- about the 7ali/ reasons as to 9h- 4C5C e3ten/e/ for shipment of a particular commo/it- cann

be li@ui/ate/ in the normal metho/+ As far as possible. the substitution of contract shoul/ be allo9e/ if the e3portemaintains account 9ith the same bank or it has the appro7al of the members of the consortium. if an-+

Cancellationnon%e3ecution of e3port or/er

i+ In case of cancellation of the e3port or/er for 9hich the 4C5C 9as a7aile/ of b- the e3porter from the bank. or i

the e3porter is unable to e3ecute the e3port or/er for an- reason. it 9ill be in or/er for the e3porter to repa- the loa

together 9ith accrue/ interest thereon. b- purchasing foreign e3change 1principal K interest2 from /omestic markethrough the bank+ In such cases. interest 9ill be pa-able on the rupee e@ui7alent of principal amount at the rate

applicable to ECN*S at pre%shipment stage plus a penal rate of interest from the /ate of a/7ance after a/Dustmentof interest of 4C5C alrea/- reco7ere/+

ii+ It 9ill also be in or/er for the banks to remit the amount to the o7erseas bank. pro7i/e/ the 4C5C 9as ma/e



a7ailable to e3porter from the line of cre/it obtaine/ from that bank+

iii+ Banks ma- e3ten/ 4C5C to such e3porters subse@uentl-. after ensuring that the earlier cancellation of 4C5C

9as /ue to genuine reasons+

Running Account 5acilit- for all commo/ities

i+ Banks are permitte/ to e3ten/ the GRunning AccountF facilit- un/er the 4C5C Scheme to e3porters for allcommo/ities. on the lines of the facilit- a7ailable un/er rupee cre/it. subDect to the follo9ing con/itions:

8he facilit- ma- be e3ten/e/ pro7i/e/ the nee/ for GRunning AccountF facilit- has been establishe/ b- the

e3porters to the satisfaction of the bank+

Banks ma- e3ten/ the facilit- onl- to those e3porters 9hose track recor/ has been goo/+

In all cases. 9here pre%shipment cre/it GRunning AccountF facilit- has been e3ten/e/. the LCs or firm or/eshoul/ be pro/uce/ 9ithin a reasonable perio/ of time+

8he 4C5C 9ill be marke/%off on the G5irst%in%5irst%*utF basis+

4C5C can also be marke/%off 9ith procee/s of e3port /ocuments against 9hich no 4C5C has been /ra9n

b- the e3porter+

ii+ Banks shoul/ closel- monitor the pro/uction of firm or/er or LC subse@uentl- b- e3porters an/ also the en/%usof fun/s+ It has to be ensure/ that no /i7ersion of fun/s is ma/e for /omestic use+ In case of non%utilisation of

4C5C /ra9als for e3port purposes. the penal pro7isions state/ abo7e shoul/ be ma/e applicable an/ the GRunning

AccountF facilit- shoul/ be 9ith/ra9n for the concerne/ e3porter+

iii+ Banks are re@uire/ to take an- prepa-ment b- the e3porter un/er 4C5C scheme 9ithin their foreign e3changeposition an/ Aggregate <ap Limit 1A<L2 as in/icate/ in paragraph (+#+$ 1iii2 1b2 abo7e+ With the e3tension of

GRunning AccountF facilit-. mismatches are likel- to occur for a longer perio/ in7ol7ing cost to the banks+ Banks

ma- charge the e3porters the fun/ing cost. if an-. in7ol7e/ in absorbing mismatches in respect of the prepa-mentbe-on/ one month perio/+

5or9ar/ Contracts

i+ In terms of paragraph (+#+! 1iii2 abo7e. 4C5C can be e3ten/e/ in an- of the con7ertible currencies in respect of a

e3port or/er in7oice/ in another con7ertible currenc-+ Banks are also permitte/ to allo9 an e3porter to bookfor9ar/ contract on the basis of confirme/ e3port or/er prior to a7ailing of 4C5C an/ cancel the contract 1forportion of /ra9al use/ for importe/ inputs2 at pre7ailing market rates on a7ailing of 4C5C+

ii+ Banks are permitte/ to allo9 customers to seek co7er in an- permitte/ currenc- of their choice 9hich is acti7el-

tra/e/ in the market. subDect to ensuring that the customer is e3pose/ to e3change risk in a permitte/ currenc- in



the un/erl-ing transaction+

iii+ While allo9ing for9ar/ contracts un/er the scheme. banks ma- ensure compliance of the basic 5oreign

E3change Management re@uirement that the customer is e3pose/ to an e3change risk in the un/erl-ing transaction

at /ifferent stages of the e3port finance+

Sharing of E4C un/er 4C5C

i+ 8he rupee e3port packing cre/it is allo9e/ to be share/ bet9een an e3port or/er hol/er an/ the manufacturer of

the goo/s to be e3porte/+ Similarl-. banks ma- e3ten/ 4C5C also to the manufacturer on the basis of the /isclaime

from the e3port or/er hol/er through his bank+

ii+ 4C5C grante/ to the manufacturer can be repai/ b- transfer of foreign currenc- from the e3port or/er hol/er b-a7ailing of 4C5C or b- /iscounting of bills+ Banks shoul/ ensure that no /ouble financing is in7ol7e/ in the

transaction an/ the total perio/ of packing cre/it is limite/ to the actual c-cle of pro/uction of the e3porte/ goo/s+

iii+ 8he facilit- ma- be e3ten/e/ 9here the banker or the lea/er of consortium of banks is the same for both the

e3port or/er hol/er an/ the manufacturer or. the banks concerne/ agree to such an arrangement 9here the bankersare /ifferent for e3port or/er hol/er an/ manufacturer+ 8he sharing of e3port benefits 9ill be left to the mutual

agreement bet9een the e3port or/er hol/er an/ the manufacturer+

Supplies from *ne E*E4SE nit to another E*E4SE nit

i+ 4C5C ma- be ma/e a7ailable to both. the supplier E*E4SE unit an/ the recei7er E*E4 SE unit+

ii+ 8he 4C5C for supplier E*E4SE unit 9ill be for suppl- of ra9 materials components of goo/s 9hich 9il

be further processe/ an/ finall- e3porte/ b- recei7er E* E4 SE unit+

iii+ 8he 4C5C e3ten/e/ to the supplier E*E4SE unit 9ill ha7e to be li@ui/ate/ b- receipt of foreign e3chang

from the recei7er E*E4SE unit. for 9hich purpose. the recei7er E*E4SE unit ma- a7ail of 4C5C+

i7+ 8he stipulation regar/ing li@ui/ation of 4C5C b- pa-ment in foreign e3change 9ill be met in such cases not b-negotiation of e3port /ocuments but b- transfer of foreign e3change from the banker of the recei7er E*E4SE

unit to the banker of supplier E*E4SE unit+ 8hus. there 9ill not normall- be an- post%shipment cre/it in the

transaction from the supplier E*E4 SE unitFs point of 7ie9+

7+ In all such cases. it has to be ensure/ b- banks that there is no /ouble financing for the same transaction+

Nee/less to a//. the 4C5C to recei7er E*E4SE unit 9ill be li@ui/ate/ b- /iscounting of e3port bills+

(+#+#$ )eeme/ E3ports

4C5C ma- be allo9e/ for G/eeme/ e3portsF onl- for supplies to proDects finance/ b- multilateralbilateral

agenciesfun/s+ 4C5C release/ for G/eeme/ e3portsF shoul/ be li@ui/ate/ b- grant of foreign currenc- loan at postsuppl- stage. for a ma3imum perio/ of $" /a-s or upto the /ate of pa-ment b- the proDect authorities. 9hiche7er i



earlier+ 4C5C ma- also be repai/ prepai/ out of balances in EE5C Ac as also from rupee resources of the e3porte

to the e3tent supplies ha7e actuall- been ma/e+

(+#+#& Refinance

Banks 9ill not be eligible for an- refinance from RBI against e3port cre/it un/er the 4C5C scheme an/. as such.

the @uantum of 4C5C shoul/ be sho9n separatel- from the e3port cre/it figures reporte/ for the purpose of/ra9ing e3port cre/it refinance+

*ther aspects

8he applicable benefits such as cre/it of eligible percentage of e3port procee/s to EE5C Account etc+ to th

e3porters 9ill accrue onl- after realisation of the e3port bills an/ not at the stage of con7ersion of pre%shipmentcre/it to post%shipment cre/it 1e3cept 9hen bills are /iscounte/ re/iscounte/ 9ithout recourse2+

Surplus of e3port procee/s a7ailable after a/Dusting relati7e e3port finance an/ cre/it to EE5C accountshoul/ not be allo9e/ for setting off of import bills+

EC<C co7er 9ill be a7ailable in rupees onl-. 9hereas 4C5C is in foreign currenc-+

5or the purpose of reckoning banks performance in e3ten/ing e3port cre/it. the rupee e@ui7alent of the4C5C ma- be taken into account+

%iamond %ollar *ccount 8%%*9 Sc0eme

n/er the 5oreign 8ra/e 4olic- !""0%!"#&. firmscompanies /ealing in purchasesale of rough or cut an/ polishe/

/iamon/s. /iamon/ stu//e/ De9eller-. 9ith goo/ track recor/ of at least t9o -ears in import or e3port of /iamon/9ith an annual a7erage turno7er of Rs+ $ crore or abo7e /uring the prece/ing three licensing -ears 1from April to

March2 are permitte/ to carr- out their business through /esignate/ )iamon/ )ollar Accounts 1))As2+

n/er the ))A Scheme. it 9oul/ be in or/er for banks to li@ui/ate 4C5C grante/ to a ))A hol/er b- /ollar

procee/s from sale of rough. cut an/ polishe/ /iamon/s b- him to another ))A hol/er+ 15or /etails regar/ing the)iamon/ )ollar Accounts. bank ma- refer to A4 1)IR series2 circular No+#$ /ate/ *ctober !0. !""0 issue/ b-

5oreign E3change )epartment of RBI2

Post-s0ipment Export Credit in Foreign Currency

Re/iscounting of E3port Bills Abroa/ Scheme 1EBR2

<eneral

Banks ma- utilise the foreign e3change resources a7ailable 9ith them in E3change Earners 5oreign Currenc-Accounts 1EE5C2. Resi/ent 5oreign Currenc- Accounts 1R5C2. 5oreign Currenc- 1Non%Resi/ent2 Accounts

1Banks2 Scheme. to /iscount usance bills an/ retain them in their portfolio 9ithout resorting to re/iscounting+



Banks are also allo9e/ to re/iscount e3port bills abroa/ at rates linke/ to international interest rates at post%shipment stage+

Scheme

i+ It 9ill be comparati7el- easier to ha7e a facilit- against bills portfolio 1co7ering all eligible bills2 than to ha7e

re/iscounting facilit- abroa/ on bill b- bill basis+ 8here 9ill. ho9e7er. be no bar if re/iscounting facilit- on bill to

bill basis is arrange/ b- a bank in case of an- particular e3porter. especiall- for large 7alue transactions+

ii+ Banks ma- arrange a D+an4ers *cceptance FacilityD 8+*F9 for re/iscounting the e3port bills 9ithout an-

margin an/ /ul- co7ere/ b- collateralise/ /ocuments+

iii+ Each bank can ha7e its o9n BA5 limit1s2 fi3e/ 9ith an o7erseas bank or a re/iscounting agenc- or an

arrangement 9ith another agenc- such as factoring agenc- 1in case of factoring arrangement. it shoul/ be on

G9ithout recourseF basis onl-2+

i7+ 8he e3porters. on their o9n. can arrange for themsel7es a line of cre/it 9ith an o7erseas bank or another

agenc- 1inclu/ing a factoring agenc-2 for /iscounting their e3port bills /irect subDect to the follo9ing con/itions:

1a2 )irect /iscounting of e3port bills b- e3porters 9ith o7erseas bank an/or another agenc- 9ill be /one onl-

through the branch of an authorie/ /ealer /esignate/ b- him for this purpose+

1b2 )iscounting of e3port bills 9ill be route/ through /esignate/ bank authorie/ /ealer from 9hom the packing

cre/it facilit- has been a7aile/ of+ In case. these are route/ through another bank. the latter 9ill first arrange to

a/Dust the amount outstan/ing un/er packing cre/it 9ith the concerne/ bank out of the procee/s of the re/iscounte

7+ 8he limits grante/ to banks b- o7erseas banks/iscounting agencies un/er BA5 9ill not be reckone/ for the

purpose of borro9ing limits fi3e/ b- RBI 15E)2 for them+

Eligibilit- criteria

i+ 8he Scheme 9ill co7er mainl- e3port bills 9ith usance perio/ upto #?" /a-s from the /ate of shipment 1inclusi7of normal transit perio/ an/ grace perio/. if an-2+ 8here is. ho9e7er. no bar to inclu/e /eman/ bills. if o7erseas

institution has no obDection to it+

ii+ In case borro9er is eligible to /ra9 usance bills for perio/s e3cee/ing #?" /a-s as per the e3tant instructions of

5E). 4ost%shipment Cre/it un/er the EBR ma- be pro7i/e/ be-on/ #?" /a-s+

iii+ 8he facilit- un/er the Scheme of Re/iscounting ma- be offere/ in an- con7ertible currenc-+

i7+ Banks are permitte/ to e3ten/ the EBR facilit- for e3ports to AC countries+

7+ 5or operational con7enience. the BA5 Scheme ma- be centralise/ at a branch /esignate/ b- the bank+ 8here 9il



ho9e7er. be no bar for other branches of the bank to operate the scheme as per the banks internal gui/elines

instructions+

Source of *n%shore fun/s

1i2 In the case of /eman/ bills subDect to 9hat has been state/ in paragraph '+#+$ 1i2 abo7e. these ma- ha7e to be

route/ through the e3isting post%shipment cre/it facilit- or b- 9a- of foreign e3change loans to the e3porters out othe foreign currenc- balances a7ailable 9ith banks in the Schemes ibi/+

1ii2 8o facilitate the gro9th of local market for re/iscounting e3port bills. establishment an/ /e7elopment of an

acti7e inter%bank market is /esirable+ It is possible that banks hol/ bills in their o9n portfolio 9ithout re/iscountinHo9e7er. in case of nee/. the banks shoul/ also ha7e access to the local market. 9hich 9ill enable the countr- to

sa7e foreign e3change to the e3tent of the cost of re/iscounting+ 5urther. as /ifferent banks ma- be ha7ing BA5 fo

7ar-ing amounts. it 9ill be possible for a bank 9hich has balance a7ailable in its limit to offer re/iscounting facili

to another bank 9hich ma- ha7e e3hauste/ its limit or coul/ not arrange for such a facilit-+

1iii2 Banks ma- a7ail of lines of cre/it from other banks in In/ia if the- are not in a position to raise loans from

abroa/ on their o9n or the- /o not ha7e branches abroa/. subDect to the con/ition that ultimate cost to the e3porter

shoul/ not e3cee/ $(" basis points from No7ember #(. !"## to Ma- &. !"#! 1!"" basis points upto No7ember #&.

abo7e LIB*R ER* LIB*R ERIB*R e3clu/ing 9ithhol/ing ta3+ 8he sprea/ bet9een the borro9ingan/ len/ing bank is left to the /iscretion of the banks concerne/+


1i72 Banks are also permitte/ to use foreign currenc- fun/s borro9e/ in terms of para &+!1i2 of notification No+

5EMA $!""" RB /ate/ Ma- $. !""" as also foreign currenc- fun/s generate/ through bu- % sell s9aps in the

/omestic fore3 market for granting facilit- of re/iscounting of E3port Bills Abroa/ 1EBR2 subDect to a/herence toAggregate <ap Limit 1A<L2 appro7e/ b- RBI 15E)2+

5acilit- of Re/iscounting 9ith recourse an/ 9ithout recourse

It is recognise/ that it 9ill be /ifficult to get G9ithout recourseF facilit- from abroa/ un/er BA5 or another facilit8herefore. the bills ma- be re/iscounte/ G9ith recourseF+ Ho9e7er. if an A) is in a position to arrange G9ithout

recourseF facilit- on competiti7e terms. it is permitte/ to a7ail itself of such a facilit-+

Accounting aspects

i+ 8he rupee e@ui7alent of the /iscounte/ 7alue of the e3port bills 9ill be pa-able to the e3porter an/ the sameshoul/ be utilise/ to li@ui/ate the outstan/ing e3port packing cre/it+

ii+ As the /iscounting of billse3tension of foreign e3change loans 1)4 bills2 9ill be in actual foreign e3change.

banks ma- appl- appropriate spot rate for the transactions+

iii+ 8he rupee e@ui7alents of /iscounte/ amountsforeign e3change loan ma- be hel/ in the bankFs books /istinct

from the e3isting post%shipment cre/it accounts+



i7+ In case of o7er/ue bills. banks ma- charge !"" basis points abo7e the rate of re/iscounting of foreign e3changeloan from the /ue /ate to the /ate of cr-stallisation+

7+ Interest rate as per RBI interest rate /irecti7e for post%shipment cre/it in rupees 9ill be applicable from the /ateof cr-stallisation+

7i+ In the e7ent of e3port bill not being pai/. it 9ill be in or/er for the bank to remit the amount e@ui7alent to the7alue of the bill earlier /iscounte/. to the o7erseas bankagenc- 9hich ha/ /iscounte/ the bill. 9ithout the prior

appro7al of the RBI+

Restoration of limits an/ a7ailabilit- of e3port benefits such as EE5C Account

As state/ in paragraph '+#+( abo7e. G9ithout recourseF facilit- ma- not generall- be a7ailable+ 8hus. the restorationof e3porterFs limits an/ the a7ailabilit- of e3port benefits. such as cre/it to EE5C accounts. in case of G9ith

recourseF facilit-. 9ill be effecte/ onl- on realisation of e3port procee/s an/ not on the /ate of /iscountingre/iscounting of the bills. Ho9e7er. if the bills are re/iscounte/ G9ithout recourseF. the restoration of e3porterFs

limits an/ a7ailabilit- of e3port benefits ma- be gi7en effect imme/iatel- on re/iscounting+

EC<C co7er

In the case of e3port bills re/iscounte/ G9ith recourseF. there 9ill not be an- change in the e3isting s-stem of

co7erage pro7i/e/ b- E3port Cre/it <uarantee Corporation 1EC<C2 as the liabilit- of the e3porter continues till th

relati7e bill is retire/pai/+ In other cases. 9here the bills are re/iscounte/ G9ithout recourseF. the liabilit- of EC<ceases as soon as the relati7e bills are re/iscounte/+

Refinance

Banks 9ill not be eligible for refinance from the RBI against e3port bills /iscounte/re/iscounte/ un/er the Schem

an/ as such. the bills /iscounte/re/iscounte/ in foreign currenc- shoul/ be sho9n separatel- from the e3port cre/figures reporte/ for purposes of /ra9ing e3port cre/it refinance+

E3port cre/it performance

1i2 *nl- the bills re/iscounte/ abroa/ G9ith recourseF basis an/ outstan/ing 9ill be taken into account for the

purpose of e3port cre/it performance+ 8he bills re/iscounte/ abroa/ G9ithout recourseF 9ill not count for the e3po

cre/it performance+

1ii2 Bills re/iscounte/ G9ith recourseF in the /omestic market coul/ get reflecte/ onl- in the case of the first bank

/iscounting the bills as that bank alone 9ill ha7e recourse to the e3porter an/ the bank re/iscounting 9ill not

reckon the amount as e3port cre/it+

"TEREST O" E$PORT CRE%T " FORE!" CURRE"C#

nterest rate structure on Export Credit in Foreign Currency



In respect of e3port cre/it to e3porters at internationall- competiti7e rates un/er the schemes of 4re%shipment

Cre/it in 5oreign Currenc- 14C5C2 an/ Re/iscounting of E3port Bills Abroa/ 1EBR2. banks are free to /etermin

the interest rates on e3port cre/it in foreign currenc- 9ith effect from Ma- (. !"#!+ Ho9e7er. upto Ma- &. !"#!banks ma- fi3 the rates of interest 9ith reference to ruling LIB*R. ER* LIB*R or ERIB*R. 9here7er

applicable. as un/er:

Type o, Credit nterest Rate 8 p(a9

Pre-s0ipment Credit

1a2 pto #?" /a-s Not e3cee/ing $(" basis points from No7ember #(. !"#to Ma- &. !"#! 1!"" basis points upto No7ember #&.

!"##2 o7er LIB*RER*LIB*RERIB*R

1b2 Be-on/ #?" /a-s an/ upto $'" /a-s Rate for initial perio/ of #?" /a-s pre7ailing at the time

of e3tension plus !"" basis points i+e+ 1i21a2 abo7e plus!"" basis points

Post-s0ipment Credit

1a2 *n /eman/ bills for transit perio/ 1as

specifie/ b- 5E)AI2

Not e3cee/ing $(" basis points from No7ember #(. !"#

to Ma- &. !"#! 1!"" basis points upto No7ember #&.

!"##2 o7er LIB*RER*LIB*RERIB*R

1b2 Against usance bills 1cre/it for total perio/

comprising usance perio/ of e3port bills.transit perio/ as specifie/ b- 5E)AI an/

grace perio/ 9here7er applicable2 upto '

months from the /ate of shipment

Not e3cee/ing $(" basis points from No7ember #(. !"#

to Ma- &. !"#! 1!"" basis points upto No7ember #&.!"##2 o7er LIB*RER*LIB*RERIB*R

1c2 E3port Bills 1)eman/ or sance2 realie/after /ue /ate but upto /ate of cr-stalliation

Rate for 1ii2 1b2 abo7e plus !"" basis points

Note: i2 Bank shoul/ not le7- another charges o7er an/ abo7e the interest rate un/er an- name 7i+ ser7icecharge management charge etc+ 8he practice of IBA fi3ing out of pocket e3penses has been /one a9a- 9ith effec



from August !"#! an/ the /ecision to reco7er out of pocket e3penses is left to in/i7i/ual banks+ While reco7eringout of pocket e3penses. banks shoul/ ensure that the charges are reasonable an/ on an actual cost basis+

ii2 Banks are free to /eci/e the rate of interest. being the rupee cre/it rate. for pre%shipment an/ post%shipment

cre/it be-on/ the tenors prescribe/ abo7e. keeping in 7ie9 the gui/elines on Base Rate+

P*RT-C

CUSTOMER SER'CE *"% SMP.FC*TO" OF PROCE%URES

Customer Service

<eneral

i+ Banks ma- pro7i/e timel- an/ a/e@uate cre/it an/ also ren/er essential customer ser7icesgui/ance in regar/ to

proce/ural formalities an/ e3port opportunities to their e3porter clients+

ii+ Banks shoul/ open E3port Counsel *ffices to gui/e e3porters particularl- the small ones an/ those taking upnon%tra/itional e3ports+

Working <roup to re7ie9 E3port Cre/it

As part of the on%going efforts to a//ress 7arious issues relating to customer ser7ice to e3porters. the Reser7e Ban

of In/ia ha/ constitute/ a Working <roup in Ma- !""(. consisting of select banks an/ e3portersF organiations tore7ie9 E3port Cre/it+ 8he <roup has come out 9ith a comprehensi7e set of recommen/ations most of 9hich ha7e

been accepte/ an/ communicate/ to banks+ 1*nnex 12+

<ol/ Car/ Scheme for e3porters

8he <o7ernment 1Ministr- of Commerce an/ In/ustr-2. in consultation 9ith RBI ha/ in/icate/ in the 5oreign

8ra/e 4olic- !""$%"& that a <ol/ Car/ Scheme 9oul/ be 9orke/ out b- RBI for cre/it9orth- e3porters 9ith goo/track recor/ for eas- a7ailabilit- of e3port cre/it on best terms+ Accor/ingl-. in consultation 9ith select banks an/

e3porters. a <ol/ Car/ Scheme 9as /ra9n up+ 8he Scheme en7isages certain a//itional benefits base/ on the

recor/ of performance of the e3porters+ 8he <ol/ Car/ hol/er 9oul/ enDo- simpler an/ more efficient cre/it/eli7er- mechanism in recognition of his goo/ track recor/+ 8he salient features of the Scheme are:

All cre/it9orth- e3porters. inclu/ing those in small an/ me/ium sectors. 9ith goo/ track recor/ 9oul/ be

eligible for issue of <ol/ Car/ b- in/i7i/ual banks as per the criteria to be lai/ /o9n b- the latter+

<ol/ Car/ un/er the Scheme ma- be issue/ to all eligible e3porters inclu/ing those in the small an/me/ium sectors 9ho satisf- the lai/ /o9n con/itions+

8he scheme 9ill not be applicable for e3porters blackliste/ b- EC<C or ha7ing o7er/ue bills in e3cess of



#" of the pre7ious -earFs turno7er+

<ol/ Car/ hol/er e3porters. /epen/ing on their track recor/ an/ cre/it 9orthiness. 9ill be grante/ better

terms of cre/it inclu/ing rates of interest than those e3ten/e/ to other e3porters b- the banks+

Applications for cre/it 9ill be processe/ at norms simpler an/ un/er a process faster than for other

e3porters+

Banks 9oul/ clearl- specif- the benefits the- 9oul/ be offering to <ol/ Car/ hol/ers+

8he charges sche/ule an/ fee%structure in respect of ser7ices pro7i/e/ b- banks to e3porters un/er the

Scheme 9ill be relati7el- lo9er than those pro7i/e/ to other e3porters+

8he sanction an/ rene9al of the limits un/er the Scheme 9ill be base/ on a simplifie/ proce/ure to be

/eci/e/ b- the banks+ 8aking into account the anticipate/ e3port turno7er an/ track recor/ of the e3porter the bank

ma- /etermine nee/%base/ finance 9ith a liberal approach+

In%principle limits 9ill be sanctione/ for a perio/ of $ -ears 9ith a pro7ision for automatic rene9al subDec

to fulfillment of the terms an/ con/itions of sanction+

A stan/%b- limit of not less than !" per cent of the assesse/ limit ma- be a//itionall- ma/e a7ailable tofacilitate urgent cre/it nee/s for e3ecuting su//en or/ers+ In the case of e3porters of seasonal commo/ities. the

peak an/ off%peak le7els ma- be appropriatel- specifie/+

In case of unanticipate/ e3port or/ers. norms for in7entor- ma- be rela3e/. taking into account the sie an

nature of the e3port or/er+

Re@uests from car/ hol/ers 9oul/ be processe/ @uickl- b- banks 9ithin !( /a-s #( /a-s an/ > /a-s for

fresh applications rene9al of limits an/ a/ hoc limits. respecti7el-+

<ol/ Car/ hol/ers 9oul/ be gi7en preference in the matter of granting of packing cre/it in foreign currenc-

Banks 9oul/ consi/er 9ai7er of collaterals an/ e3emption from EC<C guarantee schemes on the basis of

car/ hol/ers cre/it9orthiness an/ track recor/+

8he facilit- of further 7alue a//ition to their car/s through supplementar- ser7ices like A8M. Internet

banking. International /ebit cre/it car/s ma- be /eci/e/ b- the issuing banks+

8he applicable rate of interest to be charge/ un/er the <ol/ Car/ Scheme 9ill not be more than the general

rate for e3port cre/it in the respecti7e bank an/ 9ithin the ceiling prescribe/ b- RBI+ In keeping 9ith the spirit ofthe Scheme. banks 9ill en/ea7our to pro7i/e the best rates possible to <ol/ Car/ hol/ers on the basis of their ratin

an/ past performance+

In respect of the <ol/ Car/ hol/ers. the prescribe/ rate of interest on post%shipment rupee e3port cre/it ma



be e3ten/e/ for a ma3imum perio/ upto $'( /a-s+

<ol/ Car/ hol/ers. on the basis of their track recor/ of timel- realiation of e3port bills. 9ill be consi/ere/

for issuance of foreign currenc- cre/it car/s for meeting urgent pa-ment obligations. etc+

Banks ma- ensure that the 4C5C re@uirements of the <ol/ Car/ hol/ers are met b- gi7ing them priorit-

o7er non%e3port borro9ers 9ith regar/ to granting loans out of their 5CNR 1B2 fun/s. etc+

Banks 9ill consi/er granting term loans in foreign currenc- in /eser7ing cases out of their 5CNR 1B2. R5C

etc+ fun/s+ 1Banks ma- not grant such loans from their o7erseas borro9ings un/er the !( per cent 9in/o9 of

o7erseas borro9ings+2

)ela- in cre/iting the procee/s of e3port bills /ra9n in foreign currenc-

)ela-s are obser7e/ in passing on the cre/it of e3port bills /ra9n in foreign currenc- to the e3porters after the

foreign currenc- amounts are cre/ite/ to the GNostroF accounts of the banks+

Although there are instructions that the prescribe/ post%shipment interest rate 9ill cease from the /ate of cre/it to

the Nostro account. the cre/it limits enDo-e/ b- the e3porters remain froen till the actual /ate of cre/it of rupeee@ui7alent to the account of the customer+ 8here is. therefore. nee/ to promptl- restore the limit of the e3porters on

realisation of bills an/ pass on the rupee cre/it to the customer+

4a-ment of compensation to e3porters for /ela-e/ cre/it of e3port bills

In respect of the /ela- in affor/ing cre/it in respect of cre/it a/7ices complete in all respects. the

compensation stipulate/ b- 5E)AI shoul/ be pai/ to the e3porter client. 9ithout 9aiting for a /eman/ from the

e3porter+

Banks shoul/ /e7ise a s-stem to monitor timel- cre/it of the e3port procee/s to the e3porters account an/

pa-ment of compensation as per 5E)AI rules+

8he internal au/it an/ inspection teams of the banks shoul/ specificall- comment on these aspects in the

Sanction o, export credit proposals

8ime limit for sanction

8he sanction of freshenhance/ e3port cre/it limits shoul/ be ma/e 9ithin &( /a-s from the /ate of receipt of cre/

limit application 9ith the re@uire/ /etailsinformation supporte/ b- re@uisite financialoperating statements+ In casof rene9al of limits an/ sanction of a/ hoc cre/it facilities. the time taken b- banks shoul/ not e3cee/ $" /a-s an/

#( /a-s respecti7el-. other than for <ol/ Car/ hol/ers+



A/ hoc limit

At times. e3porters re@uire a/ hoc limits to take care of large e3port or/ers 9hich 9ere not foreseen earlier+ Banks

shoul/ respon/ to such situations promptl-+ Apart from this. banks shoul/ a/opt a fle3ible approach in respect of

e3porters. 9ho for genuine reasons are unable to bring in correspon/ing a//itional contribution in respect of highecre/it limits sought for specific or/ers+ No a//itional interest is to be charge/ in respect of a/ hoc limits grante/ b-

9a- of pre%shipmentpost%shipment e3port cre/it+

In cases 9here the e3port cre/it limits are utilise/ full-. banks ma- a/opt a fle3ible approach in negotiating the bil

/ra9n against LCs an/ consi/er in such cases /elegating /iscretionar-higher sanctioning po9ers to branchmanagers to meet the cre/it re@uirements of the e3porters+ Similarl- branches ma- also be authorie/ to /isburse a

certain percentage of the enhance/a/ hoc limits. pen/ing sanction b- the higher authoritiesboar/committee 9ho

ha/ originall- accor/e/ sanctions to enable the e3porters to e3ecute urgent e3port or/ers in time+

*ther re@uirements

All reDections of e3port cre/it proposals shoul/ be brought to the notice of the Chief E3ecuti7e of the bank

e3plaining the reasons for reDection+

8he internal au/it an/ inspection teams of the banks shoul/ comment specificall- on the timel- sanction of

e3port cre/it limits 9ithin the time sche/ule prescribe/ b- RBI+

8he e3port cre/it limits shoul/ be e3clu/e/ for bifurcation of the 9orking capital limit into loan an/ cashcre/it components+

Banks shoul/ nominate suitable officers as compliance officers in their foreign /epartmentsspecialie/

branches to ensure prompt an/ timel- /isposal of cases pertaining to e3porters+

It is necessar- to submit a re7ie9 note at @uarterl- inter7als to the Boar/ on the position of sanction of cre/limits to e3porters+ 8he note ma- co7er among other things. number of applications 19ith @uantum of cre/it2

sanctione/ 9ithin the prescribe/ time%frame. number of cases sanctione/ 9ith /ela- an/ pen/ing sanction

e3plaining reasons therefor+

Simpli,ication o, procedure ,or delivery o, export credit in ,oreign currency and in rupees

<eneral

With a 7ie9 to ensuring timel- /eli7er- of cre/it to e3porters an/ remo7ing proce/ural hassles. the follo9inggui/elines. applicable to rupee e3port cre/it as 9ell as e3port cre/it in foreign currenc-. ma- be brought into effec

<ui/elines

i+ Simplification of proce/ures



Banks shoul/ simplif- the application form an/ re/uce /ata re@uirements from e3porters for assessment of

their cre/it nee/s. so that e3porters /o not ha7e to seek outsi/e professional help to fill in the application form or t

furnish /ata re@uire/ b- the banks+

Banks shoul/ a/opt an- of the metho/s. 7i+ 4roDecte/ Balance Sheet metho/. 8urno7er metho/ or CashBu/get metho/. for assessment of 9orking capital re@uirements of their e3porter%customers. 9hiche7er is most

suitable an/ appropriate to their business operations+

In the case of consortium finance. once the consortium has appro7e/ the assessment. member banks shoul/

simultaneousl- initiate their respecti7e sanction processes+

ii+ *n line cre/it to e3porters

Banks pro7i/e Line of Cre/it normall- for one -ear 9hich is re7ie9e/ annuall-+ In case of /ela- in

rene9al. the sanctione/ limits shoul/ be allo9e/ to continue uninterrupte/ an/ urgent re@uirements of e3porters

shoul/ be met on a/ hoc basis+

In case of establishe/ e3porters ha7ing satisfactor- track recor/. banks shoul/ consi/er sanctioning a Lineof Cre/it for a longer perio/. sa-. $ -ears. 9ith in%built fle3ibilit- to step%upstep%/o9n the @uantum of limits

9ithin the o7erall outer limits assesse/+ 8he step%up limits 9ill become operati7e on attainment of pre%/etermine/

performance parameters b- the e3porters+ Banks shoul/ obtain securit- /ocuments co7ering the outer limitsanctione/ to the e3porters for such longer perio/+

In case of e3port of seasonal commo/ities. agro%base/ pro/ucts. etc+. banks shoul/ sanction 4eakNon%pea

cre/it facilities to e3porters+

Banks shoul/ permit interchangeabilit- of pre%shipment an/ post% shipment cre/it limits+

8erm Loan re@uirements for e3pansion of capacit-. mo/erniation of machiner- an/ up gra/ation oftechnolog- shoul/ also be met b- banks at their normal rate of interest+

Assessment of e3port cre/it limits shoul/ be nee/ base/ an/ not /irectl- linke/ to the a7ailabilit- of

collateral securit-+ As long as the re@uirement of cre/it limit is Dustifie/ on the basis of the e3porters performance

an/ track recor/. the cre/it shoul/ not be /enie/ merel- on the groun/s of non%a7ailabilit- of collateral securit-+

iii+ Wai7er of submission of or/ers or LCs for a7ailing pre%shipment cre/it+

Banks shoul/ not insist on submission of e3port or/er or LC for e7er- /isbursement of pre%shipment cre/itfrom e3porters 9ith consistentl- goo/ track%recor/+ Instea/. a s-stem of perio/ical submission of a statement of

LCs or e3port or/ers in han/ shoul/ be intro/uce/+

Banks ma- 9ai7e. ab initio. submission of or/erLC in respect of e3porters 9ith goo/ track recor/ an/ putin place the s-stem of obtaining perio/ical statement of outstan/ing or/ersLCs on han/+ 8he same ma- be

incorporate/ in the sanction proposals as 9ell as in the sanction letters issue/ to e3porters an/ appropriatel-

brought to the notice of EC<C+ 5urther. if such 9ai7ers are permitte/ at a time subse@uent to sanction of e3port



cre/it limits 9ith the appro7al of the appropriate authorit-. the same ma- be incorporate/ in the terms of sanction

b- 9a- of amen/ments an/ communicate/ to EC<C+

i7+ Han/ling of e3port /ocuments

Banks are re@uire/ to obtain. among others. original sale contractconfirme/ or/er proforma in7oice countersigne

b- o7erseas bu-er in/ent from authorie/ agent of o7erseas bu-er for han/ling the e3port /ocuments as per5oreign E3change Management regulations+ Submission of such /ocuments nee/ not be insiste/ upon at the time o

han/ling the e3port /ocuments. since the goo/s ha7e alrea/- been 7alue/ an/ cleare/ b- the Customs authorities.

e3cept in the case of transactions 9ith Letters of Cre/it 1LC2 9here the terms of LC re@uire submission of the salecontract other alternati7e /ocuments+

7+ 5ast track clearance of e3port cre/it

At specialie/ branches an/ branches ha7ing sieable e3port business. a facilitation mechanism for assistin

e3porter%customers shoul/ be put in place for @uick initial scrutin- of cre/it application an/ for /iscussions forseeking a//itional information or clarifications+

Banks shoul/ streamline their internal s-stems an/ proce/ures to compl- 9ith the stipulate/ time limits for

/isposal of e3port cre/it proposals an/ also en/ea7our to /ispose of e3port cre/it proposals ahea/ of the prescribe

time sche/ule+ A flo9 chart in/icating chronological mo7ement of cre/it application from the /ate of receipt till th/ate of sanction shoul/ also accompan- cre/it proposals+

Banks shoul/ /elegate higher sanctioning po9ers to their branches for e3port cre/it+

Banks shoul/ consi/er re/ucing at least some of the inter7ening la-ers in the sanctioning process+ It 9oul/

be /esirable to ensure that the total number of la-ers in7ol7e/ in /ecision%making in regar/ to e3port finance /oesnot e3cee/ three+

Banks shoul/ intro/uce a s-stem of ,oint Appraisal b- officials at branches an/ a/ministrati7e offices. to

facilitate @uicker processing of e3port cre/it proposals+

Where feasible. banks shoul/ set up a Cre/it Committee at specialie/ branches an/ at a/ministrati7e

offices. for sanctioning 9orking capital facilities to e3porters+ 8he Cre/it Committee shoul/ ha7e sufficientl-higher sanctioning po9ers+

7i+ 4ublicit- an/ training

<enerall-. e3port cre/it at internationall- competiti7e rates is ma/e a7ailable in foreign currenc- at select

branches of banks+ In or/er to make the scheme more popular an/ consi/ering the competiti7e interest rate onforeign currenc- loans an/ to mitigate an- possible e3change risk. e3porters nee/ to be encourage/ to make

ma3imum use of e3port cre/it in foreign currenc-+ Banks locate/ in areas 9ith concentration of e3porters shoul/.

therefore. gi7e 9i/e publicit- to this important facilit- an/ make it easil- accessible to all e3porters inclu/ing sma

e3porters an/ ensure that more number of branches are /esignate/ for making a7ailable e3port cre/it in foreign



currenc-+

Banks ma- also arrange to publicise 9i/el- the facilit- of prescribe/ interest rates being a7ailable for

/eeme/ e3ports an/ ensure that operating staff are a/e@uatel- sensitie/ in this regar/+

*fficers at operating le7el shoul/ be pro7i/e/ 9ith a/e@uate training+ In the matter of transfer of officials

from critical branches /ealing in e3port cre/it. banks shoul/ ensure that the ne9 incumbents poste/ possessa/e@uate kno9le/ge e3posure in the areas of fore3 as 9ell as e3port cre/it to a7oi/ /ela-s in

processingsanctioning of e3port cre/it limits an/ thereb- subDecting e3porters to the risk of cancellation of e3port

7ii+ Customer E/ucation

Banks shoul/ bring out a Han/ Book containing salient features of the simplifie/ proce/ures for sanction o

e3port cre/it in 5oreign Currenc- at internationall- competiti7e rates as 9ell as in Rupees for the benefit of their

e3porter%clients+

8o facilitate interaction bet9een banks an/ e3porters. banks shoul/ perio/icall- organise E3porters Meet acentres 9ith concentration of e3porters+

Monitoring implementation of gui/elines

i+ Banks shoul/ ensure that e3portersF cre/it re@uirements are met in full an/ promptl- at competiti7e rates+ 8he

abo7e referre/ gui/elines must be implemente/. both in letter an/ spirit. so as to bring about a perceptibleimpro7ement in cre/it /eli7er- an/ relate/ banking ser7ices to e3port sector+ Banks shoul/ also a//ress the

/eficiencies. if an-. in the mechanism of /eplo-ment of staff in their organisations to eliminate the bottlenecks in

the flo9 of cre/it to the e3port sector+

ii+ Banks shoul/ set up an internal team to 7isit branches perio/icall-. sa-. once in t9o months to gauge the e3tentof implementation of the <ui/elines+

Constitution o, a separate Su5-Committee under State .evel +an4ers7 Committee

Conse@uent upon the 9in/ing up of the State Le7el E3port 4romotion Committee 1SLE4C2. issues relating to

e3port finance an/ other bank relate/ issues at the state le7el 9ill be taken up. henceforth. b- a Sub%Committee of

the State Le7el BankersF Committee 1SLBC2+ 8his Sub%Committee. kno9n as JSub%Committee of SLBC for E3po4romotionJ. 9oul/ inclu/e local e3portersF associations. the State Bank of In/ia. t9o three lea/ing banks han/lin

sieable e3port business. )irectorate <eneral of 5oreign 8ra/e. Customs. State <o7ernment 1)epartment ofCommerce an/ In/ustr- an/ )epartment of 5inance2. the E3port%Import Bank. E3port Cre/it an/ <uaranteeCorporation. 5oreign E3change )ealersF Association of In/ia besi/es the Reser7e Bank 15oreign E3change

)epartment an/ )epartment of Banking Super7ision2 at the regional le7el. as members+

8he Sub%Committee is e3pecte/ to meet at half%-earl- inter7als. or earlier. if consi/ere/ necessar-+ 8he con7enor

bank of the SLBC 9oul/ be the Con7enor of the Sub%Committee in the respecti7e states an/ the meetings 9oul/ bchaire/ b- the E3ecuti7e )irector of the con7enor bank+ 8he intimation of the /ates of con7ening forthcoming



meetings are communicate/ to all concerne/ 9ell in a/7ance so that issues of the e3port sector are 9ell a//resse/

REPORT"! REUREME"TS

Export credit per,ormance indicator ,or 5an4s

0+#+# Banks are re@uire/ to reach a le7el of outstan/ing e3port cre/it e@ui7alent of #! per cent of each banks

A/Duste/ Net Bank Cre/it 1ANBC2#+ Accor/ingl-. the performance of banks is being re7ie9e/ b- the RBI. )B*))irecti7es )i7ision. 1E3port Cre/it2 at 0al, yearly inter7als+ 8he performance of the banks in e3ten/ing e3port

cre/it 9ill be assesse/ on the basis of the @uarterl- /ata submitte/ b- the banks to Reser7e Bank of In/ia.

)epartment of Banking Super7ision. Central *ffice. *SM*S )i7ision. Mumbai+

0+#+! Banks shoul/ en/ea7our to reach a le7el of e3port cre/it e@ui7alent to #! per cent of the bankFs ANBC+ Whebanks ha7e alrea/- pro7i/e/ e3port cre/it to the e3tent of #! per cent. en/ea7our shoul/ be ma/e to increase the

same to a higher le7el an/ ensure that there is no fall in the ratio+ No 9orth9hile e3port or/er shoul/ be /enie/

e3port cre/it from the banks+

0+#+$ 5ailure to achie7e the stipulate/ le7el of e3port cre/it an/ or failure to sho9 a /istinct impro7ement in e3portcre/it performance coul/ in7ite bank%specific polic- responses 9hich coul/ inclu/e raising of reser7e re@uirement

an/ 9ith/ra9al of refinance facilities+ 8he )irecti7es )i7ision. 1E3port Cre/it2. )epartment of Banking *peration

an/ )e7elopment. of the Reser7e Bank of In/ia 9oul/ closel- monitor the e3port cre/it performance of the banks+

uarterly data o, export credit dis5ursements

Banks shoul/ submit the e3port cre/it /isbursement /ata on a @uarterl- basis in the format gi7en in *nnex ?Banks shoul/ ensure that the statement reaches Reser7e Bank of In/ia. )epartment of Banking Super7ision. Centr

*ffice. *SM*S )i7ision. Centre%#. Worl/ 8ra/e Centre. Cuffe 4ara/e. Mumbai &""""( positi7el- b- the en/ ofthe month follo9ing the @uarter to 9hich it relates+

Pre-s0ipment credit to %iamond Exporters - Con,lict %iamonds - mplementation o, Gim5erleyProcess Certi,ication Sc0eme 8GPCS9

8ra/ing in conflict /iamon/s has been banne/ b- + N+ Resolutions Nos+ ##>$ an/ ##>' as the conflict /iamon/spla- a large role in fun/ing the rebels in the ci7il 9ar torn areas of Sierra Leone+ 8here is also a 4rohibition on the

/irect in/irect import of all rough /iamon/s from Sierra Leone an/ Liberia in terms of N Resolution No+

#$"'1!"""2 an/ #$&$1!""#2 respecti7el-+ In/ia. among other countries. has a/opte/ a N man/ate/ ne9Oimberle- 4rocess Certification Scheme to ensure that no rough /iamon/s mine/ an/ illegall- tra/e/ enter the

countr-+ 8herefore. import of /iamon/s into In/ia shoul/ be accompanie/ b- Oimberle- 4rocess Certificate 1O4CSimilarl-. e3ports from In/ia shoul/ also be accompanie/ b- the O4C to the effect that no conflict rough /iamon/

ha7e been use/ in the process+ 8he O4Cs 9oul/ be 7erifie/ 7ali/ate/ in the case of imports e3ports b- the <eman/ ,e9eller- E3port 4romotion Council+ In or/er to ensure the implementation of Oimberle- 4rocess Certificatio

Scheme. banks shoul/ obtain an un/ertaking in the format gi7en in *nnex = from such of the clients 9ho ha7e

been e3ten/e/ cre/it for /oing an- business relating to /iamon/s+

https://www.rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?Id=8132&Mode=0#f1

https://www.rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?Id=8132&Mode=0#f1



*""E$17i/e paragraph ?+#+

Recommendations o, t0e ;or4ing !roup to Revie: Export Credit

8he Working <roup to Re7ie9 E3port Cre/it has recommen/e/ se7eral measures to impro7e customer ser7ice+ 8hrecommen/ations 9hich ha7e been accepte/ an/ communicate/ to the banks are gi7en belo9:

Revie: o, t0e existing procedure ,or export credit

1i2 8here is a nee/ for attitu/inal change in the approach of banks officials in /ealing 9ith small an/ me/ium

e3porters+ Banks ma- take suitable steps in this regar/+

1ii2 Banks shoul/ put in place a control an/ reporting mechanism to ensure that the applications for e3port cre/itespeciall- from Small an/ Me/ium E3porters are /ispose/ of 9ithin the prescribe/ time frame+

1iii2 While processing applications for E3port Cre/it. banks shoul/ raise all @ueries in one shot in or/er to a7oi/

/ela-s in sanctioning cre/it+

1i72 Small an/ Me/ium E3porters especiall- in the upcountr- centers shoul/ be properl- traine/ b- SSI e3portorganiations 9ith technical assistance from banks regar/ing correct filling up of forms+

172 Collateral securit- shoul/ not be insiste/ upon as far as possible+

17i2 State Le7el E3port 4romotion Committees 1SLE4Cs2 9hich ha7e been reconstitute/ as sub%committees of theSLBCs shoul/ pla- a greater role in promoting coor/ination bet9een banks an/ e3porters+

Revie: o, t0e !old Card Sc0eme

1i2 Since the number of <ol/ Car/s issue/ b- banks 9as lo9. banks 9ere a/7ise/ to spee/ up the process of issue the car/s to all the eligible e3porters especiall- the SME e3porters an/ ensure that the process is complete/ 9ithin

perio/ of three months+

1ii2 Simplifie/ proce/ure for issue of <ol/ Car/s as en7isage/ un/er the scheme shoul/ be implemente/ b- all

1iii2 Banks ma- consi/er e3empting all /eser7ing <ol/ Car/ hol/er e3porters from the 4acking Cre/it <uarantee

Sectoral Schemes of EC<C on the basis of their track recor/+

Revie: o, export credit ,or non-star exporters

Banks shoul/ post no/al officers at Regional onal *ffices maDor branches for atten/ing to cre/it relate/ problem



of SME e3porters+

Revie: o, ot0er issues

1i2 8he interest rates prescribe/ b- RBI upto ,une $". !"#" are ceiling rates+ Since the banks are at libert- to charglesser rates of interest. banks ma- consi/er e3ten/ing e3port cre/it at rates lesser than the ceiling rates prescribe/

1ii2 Banks shoul/ gi7e priorit- for the foreign currenc- e3port cre/it re@uirements of e3porters o7er foreign

currenc- loans to non%e3porter borro9ers+

nterest on Export Credit in Foreign Currency

As recommen/e/ b- the Working <roup. the ceiling rate of interest on e3port cre/it in foreign currenc- b- banks

9as re7ise/ to LIB*R plus #"" basis points 9+e+f+ April #?. !""' from the e3isting ceiling rate of LIB*R plus >(

basis points+ 8he re7ision in the interest 9oul/ be applicable not onl- to fresh a/7ances but also to the e3istinga/7ances for the remaining perio/+ 8his rise is subDect to the con/ition that banks 9ill not le7- another charges i

an- manner un/er an- name 7i+ ser7ice charge. management charge. etc+ 8he practice of IBA fi3ing out of pockete3penses has been /one a9a- 9ith effect from August !"#! an/ the /ecision to reco7er out of pocket e3penses is

left to in/i7i/ual banks+ While reco7ering out of pocket e3penses. banks shoul/ ensure that the charges are

reasonable an/ on an actual cost basis+ Subse@uentl-. the ceiling rate of interest on e3port cre/it in foreign currencb- banks 9as re7ise/ to LIB*R plus $(" basis points 9+e+f+ 5ebruar- (. !""0+ Ho9e7er 9ith the gra/ual easing of

the con/itions in the o7erseas market. the ceiling rate of interest on e3port cre/it in foreign currenc- b- banks 9as

re7ise/ to LIB*R plus !"" basis points 9+e+f+ 5ebruar- #0. !"#"+ Oeeping in 7ie9 the tight li@ui/it- con/itions anthe 9i/ening of cre/it sprea/s /ue to /e7elopments in the international financial markets. the ceiling rate of interes

on e3port cre/it in foreign currenc- b- banks 9as increase/ to LIB*R plus $(" basis points from No7ember #(.

!"## to Ma- &. !"#!+ With a 7ie9 to increasing the a7ailabilit- of fun/s to e3porters. banks are free to /eterminethe interest rates on e3port cre/it in foreign currenc- 9ith effect from Ma- (. !"#!+

*""E$17i/e paragraph #

Anne3ure to Circular IEC) No+#$"&+"!+"!!""!%"$ /ate/ 5ebruar- $. !""$Underta4ing ,rom %iamond Clients

Form o, an underta4ing to 5e o5tained 5y5an4s ,rom t0e clients :0o 0ave 5een extended

credit ,or doing any 5usiness relating to diamonds

JI hereb- un/ertake :

1i2 not to kno9ingl- /o an- business in the conflict /iamon/s as ha7e been banne/ 7i/e N Securit- Council

Resolutions No+ ##>$. ##>' an/ #$&$1!""#2 or the conflict /iamon/s 9hich come from an- area in Africa inclu/in



Liberia controlle/ b- forces rebelling against the legitimate an/ internationall- recognise/ <o7ernment of the

rele7ant countr-+

1ii2 not to /o /irect or in/irect import of rough /iamon/s from Sierra Leone an/or Liberia 9hether or not such

/iamon/s originate/ in Liberia in terms of N Securit- Council Resolution No+#$"' 1!"""2 9hich prohibits the/irect or in/irect import of all rough /iamon/s from Sierra Leone an/ N Securit- Council Resolution No+#$&$

1!""#2 9hich pre7ents such import of all rough /iamon/s from Sierra Leone an/ N Securit- Council Resolution

No+#$&$1!""#2 9hich pre7ents such import from Liberia+

1ii2 to follo9 Oimberle- 4rocess Certification Scheme for /ealing in /iamon/s+

I am also gi7ing m- consent to the 9ith/ra9al of all m- cre/it entitlements. if at an- time. I am foun/ guilt- of

kno9ingl- ha7ing con/ucte/ business in such /iamon/sJ+

*nnex17i/e para &+

Anne3 to circular )B*)+)IR1E3p2+BC+No+'0 "&+"!+""#!"#!%#$ /ate/ ,anuar- #&. !"#$+

Tari,, .ines o, Engineering Products approved ,or nclusion ,or nterest Su5vention

TC

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https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=7804&Mode=0#encl

https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=7804&Mode=0#encl



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?&#& AIR PACM 4M4S. AIR *8HR <AS C*M4RSRS 6 5ANS PN8L8N< RC;CLN<H**)S INCR4R8N< A 5AN. W N 5I88E) WI8H 5IL8ERS

?&!' )ERRICOS CRNS.INCL CABLE CRNS M*BL L58N< 5RMS. S8R)L CRRS 6 WROS

8RCOS 58) W8H A CRN

?&>> MCHNR 5R WRON< RBBR 4LS8CS 5R 8HE MN5C8R *5 4R)C8S 5R*M 8HESE

M8RLS. N+E+S+

?&>0 MCHNS 6 MCHNCL A44LNCS HPN< IN)P)L 5NC8NS. N+E+S+

?&?# 8A4S. C*COS. PALPES AN) SIMILAR A44LIANCES 5*R 4I4ES. B*ILER SHELLS.

8ANOS. PA8S *R 8HE LIOE. INCL)IN< 4RESSRE%RE)CIN< PALP

?&?! BALL *R R*LLER BEARIN<S

?&?$ 8RNSMSN SH58S 6 CRNOS <EARSBALL SCREWS BEARIN< H*SIN< 6 *8HR

4LAIN SH58 BEARIN<S S4) CHN<RS INCL 8*RQE CNPR8RS55L;WHEELS

?&?& <ASOE8S 6 SMLR ,*IN8S *5 M8L SH8N< CMBN) W8H *8HR M8RL SE8S

ASSR8MN8S *5 <SO8S 6 SMLR ,*IN8S. 48 4 IN 4*CHES. ENPL4S E8C

?&?' MACHINES AN) A44ARA8S *5 A OIN) SE) S*LEL; 5*R 8HE MAN5AC8RE*5 SEMIC*N)C8*R B*LES *R WA5ERS. )EPICES. E

?("# ELC8RC M*8RS 6 <ENR8RS 1ECL <ENR8N< SE8S2

?("! ELEC8RIC <ENERA8IN< SE8S AN) R*8AR; C*NPER8ERS



?("' 4RIMAR; CELLS AN) 4RIMAR; BA88ERIES

?(## ELC8RCL I<N8N S8R8N< EQ4MN8 5R S4RO%I<N8N E8C <NR8RS E8C 6 C8

*8S *5 A OIN) SE) IN C*N,NC8I*N W8H SCH EN<INES

?(#! ELECRCL LI<8N< SI<NALLIN< EQ4MN8 1ECL AR8CLS *5 H) N*+?($02WIN)

SCRN E8C SE) 5*R C;CLES M*8*R PEHICLES

?(#$ 4*R8BL ELC8RC LAM4S )ESI<NE) 8* 5NC8I*N B; 8HEIR *WN S*RCE *5

ENER<; *8HR 8HN LI<H8IN< EQ4MN8S *5 H)< N*+?(#!

?(&& INSLA8E) 1INCL)IN< ENAMELLE) *R AN*)ISE)2 WIRE. CABLE 1INCL)IN<

C*%AIAL CABLE2 AN) *8HER INSLA8E) ELEC8RIC C*N)C

?(&( CRBN ELC8R)S. CRBN BRSHS. LAM4 CRBNS E8C+ *8HR AR8CLS *5 <RA4HI8E

*8HR CRBN. W8H W8H*8 M8L *5 A ON) SE) 5*R ELC8RCL 4R4S

?(&' ELEC8RICAL INSLA8*RS *5 AN; MA8ERIAL

?(&> INSL8N< 588N<S 5R ELC8RCL MCHNS E8C+ ELEC8RCL C*N)I8 8BIN< 6

,*IN8S 8HER*5 *5BSE M8L LINE) W8H INSL8N< MA8RL

?(&? WAS8 6 SCRA4 *5 4RIMAR; CELLS. BA8RS 6 ELEC8RC ACML8RS S4EN8

4RMR; CELS. BA8RSELC8RC ACML8RS. ELC8RCL 4R8S *5 MACH

?'"# RAIL L*C*M*8IPES 4*WERE) 5R*M AN E8ERNAL S*RCE *5 ELEC8RICI8;*R B; ELEC8RIC ACCMLA8*RS

?'"$ SEL5%4R*4ELLE) RAILWA; *R 8RAMWA; C*ACHES. PANS AN) 8RCOS. *8HER

8HAN 8H*SE *5 HEA)IN< ?'"&



?'"& RLWA; 8RMWA; MAIN8NANC SRPC PHCLS. W N SL5 4R4L) 1E+<+WROSH*4S.CRNS. BALAS8 8M4RS. 8RCOLNRS. 8S8N< C*CHS 6 8RCO INS4C8N PHCLS2

?'"' RALW; 8RMW; <**)S PAN 6 WA<N.N8 SEL5%4R4L)

?'"> 4R8S *5 RLWA; 8RMWA; LCM8PS R*LLN<%S8*CO

?'"? RLWA; 8RMWA; 8RCO 58RS 6 58N<S MCHNCL 6 ELC8R*%MCHNCL S<NLN<.

8R5C CN8RL EQ4MN8 5R R*A)S. INLN) W8RWA;S E8C. 4R8S *5 8HE AB*PE

?'"0 C*N8AINERS 1INCL)IN< C*N8AINERS 5*R 8HE 8RANS4*R8 *5 5LI)S2

S4ECIALL; )ESI<NE) AN) EQI44E) 5*R CARRIA<E B; *NE *R M*RE M

?>#! BIC;CLES AN) *8HER C;CLES 1INCL)IN< )ELIPER; 8RIC;CLES2. N*8

M*8*RISE)

?>#$ INPALI) CARRIA<ES. W N M*8IRISE) *8HERWISE MECHANICALL;4R*4ELLE)

??"! *8HER AIRCRA58 15*R EAM4LE. HELIC*48ERS. AER*4LANES2 S4ACECRA58

1INCL)IN< SA8ELLI8ES2 AN) SB*RBI8AL AN) S4ACECRA58

??"& 4ARACH8ES 1INCL)IN< )IRI<IBLE 4ARACH8ES AN) 4ARA<LI)ERS2 AN)

R*8*CH8ES 4AR8S 8HERE*5 AN) ACCESS*RIES 8HERE8*

??"( AIRCRA58 LANCHIN< <EAR )ECO%ARRES8*R *R SIMILAR <EAR <R*N)

5L;IN< 8RAINERS 4AR8S *5 8HE 5*RE<*IN< AR8ICLES

?0"# CRISE SHI4S. ECRSI*N B*A8S . 5ERR;% B*A8S. CAR<* SHI4S. BAR<ES AN)SIMILAR PESSELS 5*R 8HE 8RANS4*R8 *5 4ERS*NS *R <*

0""( BIN*CLAR 6 *8HR *48CL 8LSC*4S 6 M*N8IN<S8HR5R *8HR AS8RNMCL



INS8RMN8 6 M*N8N<S 8HR5R EC48 8HE INS8RMN8 5*R RA)

0""' 4H8*<R4HC 1ECL CINEMA8*<RA4HIC2 CAMERAS 4H*8*<RA4HIC 5LSHL<H8

A44ARA8S 6 5LSHBLBSEC48 )SCHR< LM4S *5 H)< N*+?($0

0""> CINEMA8*<RA4HIC CAMERAS AN) 4R*,EC8*RS. WHE8HER *R N*8

INC*R4*RA8IN< S*N) REC*R)IN< *R RE4R*)CIN< A44ARA8S

0"#" A4ARA8S 6 EQ4MN8 5R 4H*8*<R4HC 1INCL) CINEMA8*<RA4HC2 LAB*RA8*RIS

N+E+S+IN 8HIS CHA48ER NE<A8*SC*4ES 4R*,EC8I*N SCREENS

0"## CM4N) *48CL MICR*SC*4ES. INCL 8H*SE 5R MCR*4H*8*<R4H;.

MCR*CENM8<R4H; MICR*4R,C8N

0"#$ LIQ) CR;S8L )PCS N8 CNS8I8N< AR8CLS 4RP))5R M*RE S4C5CL; IN *8HRH)N<S LSRS. N8 LSR )I*)S *8HR *48CL A4LNCS 6 INS8RMN8S N

0"#( SRPE;IN<. H;)R*<RA4HIC. *CEAN*<RA4HIC. H;)R*L*<ICAL.

ME8E*R*L*<ICAL <E*4H;SICAL INS8RMN8S 6 A44LNCS. ECL C*M4SS

RN<E5N)RS

0"#' BLNCS *5 A SNS8IP8; *5 ( C< B8R. W N W8H W8

0"#> )RWN<. MRON<%*8 M8HM8CL CLCL8N< INS8RMN8S INS8RMN8S 5*R

MSRN< LN8H. 5R SE IN 8HE HN) 1E+<+MICR*M8RS. CALLI4RS2 N+E+S+IN 8HIS C

0"#? INS8RMN8S 6 A44LNCS SE) IN M)CL. SR<CL. )N8L P8RNR; SCNCS. INCL

SCN8<R4HC A44R8S ELC8R*%M)CL A44R8S 6 SI<H8%8S8N< INS8RMN8

0"#0 MCHN*%8HR4; A4LNCS MS<E A4R8S 4S;CH*L<CL A488)%8S8N< A4R8S

**N 8HR4;. *;<N 8HR4;. AERSL 8HR4;. AR85CL RS4R8N A44R8S E8C

0"!# *R8H4)C A4LNCS. AR85CL 4R8S *5 8H B*); HRN<AI)S 6 *8HR A4LNCS WHCH



ARE WRN CRR) IM4LN8) IN 8HE B*); 8* CM4NS8 )5C8 )SABL8;

0"!$ INS8RMN8S. A4R8S 4 M*)LS )SI<N) 5*R )EM*NS8RA8I*NAL 4R4S. NS8BL

5R *8HR SES

0"!& MCHNES 6 A4LNCS 5R 8S8N< 8HE HR)NSS. S8RN<8H. ELS8C8;. C*M4RSSBL8;

E8C *5 MA8RLS

0"!( H;)R*ME8ERS 6 SMLR 5L*A8IN< INS8RMEN8S. 8HERM*ME8ERS.

4;R*ME8ERS E8C. RC*R)N< N8 6 AN; CMBN8N *5 8HESE INS8RMN8S

0"!' INS8RMN8S 6 A4R8S 5R MSRN< CHON< 8HE 5L*W. LEPL.4RSR *8HR

PARIABLES *5 LIQI) <ASES ECL A44R8S *5 H)< 0"#&. 0"#(. 0"!? 0"$!

0"!> INS8RMEN8S AN) A44ARA8S 5*R 4H;SICAL *R CHEMICAL ANAL;SIS 15*REAM4LE. 4*LARIME8ERS. RE5RAC8*ME8ERS. S4EC8R*ME8ER

0"!? <AS. LQ) ELEC8RICI8; S44L; 4R*)C8I*N ME8ERS. INCL CALIBRA8IN<

ME8ERS 8HERE5*R

0"!0 REP*L8I*N C*N8ERS. 4R*)C8I*N C*N8ERS. 8AIME8ERS.

MILE*ME8ERS. 4E)*ME8ERS AN) 8HE LIOE S4EE) IN)ICA8*RS AN)8ACH*ME8ERS

0"$# MEASRIN< *R CHECOIN< INS8RMEN8S. A44LIANCES AN) MACHINES. N*8S4ECI5IE) *R INCL)E) ELSEWHERE IN 8HIS

0"$$ 4R8S 6 ACCESS*RIES 5R MACHINES. A44LIANCES. INS8RMEN8S A44ARA8S*5 CHA48ER 0". NES

0#"# WRIS8%WA8CHES. 4*COE8%WA8CHES AN) *8HER WA8CHES. INCL)IN< S8*4%

WA8CHES. WI8H CASE *5 4RECI*S ME8AL *R *5 ME8AL CLA)



0#"! WRIS8%WA8CHES. 4*COE8%WA8CHES AN) *8HER WA8CHES. INCL)IN< S8*4WA8CHES. *8HER 8HAN 8H*SE *5 HEA)IN< 0#"# WRIS8%WA8CHES.

0#"$ CL*COS WI8H WA8CH M*PEMEN8S. ECL)IN< CL*COS *5 HEA)IN< 0#"&

0#"& INS8RMEN8 4ANEL CL*COS AN) CL*COS *5 A SIMILAR 8;4E 5*R PEHICLES.

AIRCRA58. S4ACECRA58 *R PESSELS

0#"> 8IME SWI8CHES WI8H CL*CO *R WA8CH M*PEMEN8 *R WI8H S;NCHR*N*S

M*8*R

0#"? WA8CH M*PEMEN8S. C*M4LE8E AN) ASSEMBLE)

0#"0 CL*CO M*PEMEN8S. C*M4LE8E AN) ASSEMBLE)

0##" CM4L8 W8CH CL*CO MPMN8S. NASSMBL) 4R8L; ASSMBL) 1MPMN8 SE8S2

INCM4L8 W8CH CL*CO MPMN8S. ASSMBL) R*<H W8CH CL*CO MPMN8S

0### WA8CH CASES AN) 4AR8S 8HERE*5

0##! CL*CO CASES AN) CASES *5 A SIMILAR 8;4E 5*R *8HER <**)S *5 8HIS

CHA48ER. AN) 4AR8S 8HERE*5

0##$ WA8CH S8RA4S. WA8CH BAN)S AN) WA8CH BRACELE8S. AN) 4AR8S 8HERE*5

0&"! ME)CL. SR<CL. )EN8AL PE8RNR; 5RNI8R E8C BARBERS CHAIRS 6 SMLR

CHAIRS 4R8S *5 8HE 5*RE<*IN< AR8ICLES

0&"( LM4S 6 LI<H8IN< 588N<S INCL SEARCH LI<H8S AN) S4*8LI<H8S E8C

N+E+S+ILLMINA8) SI<NS 6 8HE LIOE W8H 4RMNAN8 L<H8 S*RCE 6 4R8SNES



*nnex17i/e paragraph &+

Anne3 to circular )B*)+)IR+BC+No+0$ "&+"!+""# !"#!%#$ /ate/ Ma- !&. !"#$

TC82S9

TC82S9 %escription

'$"# Blankets an/ 8ra7elling Rugs

'$"! Be/ Linen. 8able Linen. 8oilet Linen an/ Oitchen Linen

'$"$ Curtains 1Inclu/ing )rapes2 an/ Interior Blin/s Curtain or Be/ Palances

'$"( Sacks an/ Bags. of a Oin/ use/ for the 4acking of <oo/s

'$"' 8arpaulins. A9nings an/ Sunblin/s 8ents Sails for Boats. Sailboar/s or Lan/craftCamping <oo/s

'$"> *ther Ma/e up Articles. Inclu/ing )ress 4atterns

*ppendix

.ist o, Circulars consolidated 5y t0e Master Circular on Rupee Export Credit

!ircular No, -ate Sub.ect

)B*)+)IR+BC+No+0$"&+"!+""#!"#!%#$ !&+"(+!"#$ Rupee E3port Cre/it%Interest Sub7ention


https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=7995&Mode=0





)B*)+)ir+1E3 p2+BC+No+>""&+"!+""#!"#!%#$

#&+"#+!"#$ Rupee E3port Cre/it% Interest Sub7ention

)B*)+)ir+1E3p2 BC+No+##!"&+"!+""#!"##%#!

#0+"'+!"#! Rupee E3port Cre/it Interest Rates

A+4+1)ir Series2 Circular no+&" "#+##+!"## E3port of <oo/s an/ Soft9are% Realisation an/

Repatriation of E3port 4rocee/s%Liberalisation

)B*)+)ir1E3p2BC+No+$?"&+"!+""#!"##%#!

##+#"+!"## Rupee E3port Cre/it Interest rates

)B*)+)ir+1E3p2+BC+No+?("&+"!+""#!"#"%##

#?+"&+!"## Li@ui/ation of 4ost%Shipment Rupee E3portCre/it

A+4+1)IR Series2 Circular No+&> $#+"$+!"## E3port of <oo/s an/ Soft9are% Realisation an/

Repatriation of e3port procee/s % Liberalisation

)B*)+)ir+1E3p2+BC+No+

$'"&+"!+""#!"#"%##

"0+"?+!"#" Rupee E3port Cre/it Interest Rates

)B*)+)ir+1E3p2+BC+No+##("&+"!+""#!""0%#"

!0+"'+!"#" Rupee E3port Cre/it Interest Rates

)B*)+)ir+1E3p2+BC+No+#"!"&+"!+""#!""0%#"

"'+"(+!"#" Rupee E3port Cre/it Interest Rates

)B*)+)ir+1E3p2+BC+No+0&"&+"!+""#!""0%#" !$+"&+!"#" Rupee E3port Cre/it Interest Rates Sub7ention

)B*)+)ir+1E3p2+BC+No+ (&

"&+"!+"#!""0%#"

!0+#"+!""0 Rupee E3port Cre/it Interest Rates E3tension of

perio/









































)B*)+)IR+1E3p2+BC+No+">"&+"!+"!!""0%#"

"#+">+!""0 Master Circular on Rupee 5oreign Currenc-E3port Cre/it 6 Customer Ser7ice to E3porters

)B*)+)ir+1E3p2 No+#$#"&+"!+"#!""?%"0 !?+"&+!""0 Rupee E3port Cre/it Interest Rates E3tension of perio/

)B*)+)ir+1E3p2 No+#""&+"!+"#!""?%"0 #'+#!+!""? Rupee E3port Cre/it Interest Rates Sub7ention

)B*)+)ir+1E3p2 No+0("&+"!+"#!""?%"0 "?+#!+!""? Rupee E3port Cre/it Interest Rates Interest on

o7er/ue E3port bills

)B*)+)ir+1E3p2 No+??"&+"!+"#!""?%"0 !?+##+!""? Rupee E3port Cre/it Interest Rates E3tension of

post%shipment perio/ of cre/it

)B*)+)ir+1E3p2 No+?""&+"!+"#!""?%"0 #(+##+!""? Rupee E3port Cre/it Interest Rates E3tension of pre%shipment perio/ of cre/it

)B*)+)ir+1E3p2 No+>>"&+"!+"#!""?%"0 ">+##+!""? Rupee E3port Cre/it Interest Rates Sub7ention %

clarification

)B*)+)ir+1E3p2 No+'?"&+"!+"#!""?%"0 !&+#"+!""? Rupee E3port Cre/it Interest Rates E3tension of

perio/

)B*)+)ir+1E3p2BC No+>>"&+"!+"#!"">%

"?

!?+"&+!""? Rupee E3port Cre/it Interest Rates E3tension of

sub7ention perio/

)B*)+)ir+1E3p2BC No+>$"&+"!+"#!"">%

"?

!(+"&+!""? Rupee E3port Cre/it Interest Rates e3tension of

perio/

)B*)+)ir+1E3p2BC No+(&"&+"!+"#!"">%

"?

$"+##+!""> Rupee E3port Cre/it Interest Rates Sub7ention

)B*)+)ir+1E3p2BC No+&#"&+"!+"#!"">% !0+#"+!""> Rupee E3port Cre/it Interest Rates e3tension of

























"? perio/

)B*)+)ir+1E3p2BC No+$&B"&+"!+"#!"">%

"?

"'+#"+!""> Rupee E3port Cre/it Interest Rates Sub7ention

)B*)+)ir+1E3p2BC No+!!"&+"!+"#!"">%

"?

#$+">+!""> Rupee E3port Cre/it Interest Rates Sub7ention

)B*)+)ir+1E3p2BC No+?""&+"!+"#!""'%

">

#>+"&+!""> Rupee E3port Cre/it Interest Rates

)B*)+)ir+1E3p2BC No+$>"&+"!+"#!""'%

">

!"+#"+!""' Rupee E3port Cre/it Interest Rates

)B*)+)ir+1E3p2 BC No+?$"&+"!+"#!""(%"'

!?+"&+!""' Rupee E3port Cre/it Interest Rates

)B*)+)ir+1E3p2 BC No+&#"&+"!+"#!""(%

"'

"!+##+!""( Rupee E3port Cre/it Interest Rates

)B*)+ )ir 1E3p2+ No+ ?$"&+"!+"#!""&%"( !0+"&+!""( Rupee E3port Cre/it Interest Rates

IEC)+ No+ #&"#+"#+&$!""$%"& $"+"'+!""& Merger of functions of In/ustrial 6 E3port Cre/i

/epartment of Reser7e Bank of In/ia 9ith its

other )epartments

IEC) No+#!"&+"!+"!!""$%"& #?+"(+!""& <ol/ Car/ scheme for E3porters

IEC) No+#$"&+"!+"#!""$%"& #?+"(+!""& Rupee E3port cre/it Interest Rates for gol/ car/hol/er E3porters

IEC) No+ #""&+"!+"#!""$%"& !&+"&+!""& Rupee E3port Cre/it Interest Rates


























IEC) No+ ("&+"!+"#!""$%"& $#+#"+!""$ Rupee E3port Cre/it Interest Rates

IEC) No+ #?"&+"!+"#!""!%"$ $"+"&+!""$ Rupee E3port Cre/it Interest rates

IEC) No+#'"&+"!+"!!""!%"$ "#+"&+!""$ E3port Cre/it % SE nits

IEC) No+?"&+"!+"#!""!%"$ !?+"0+!""! Special 5inancial 4ackage for Large 7alueE3ports

IEC) No+>"&+"!+"#!""!%"$ !$+"0+!""! Rupee E3port Cre/it Interest rates

IEC)+No+#>"&+"!+"#!""#%"! #(+"$+!""! Rupee E3port Cre/it Interest Rates

IEC)+No+#("&+"!+"!!""#%"! "$+"#+!""! E3port Cre/it to 4rocessors E3porters%Agri%E3port ones

IEC)+No+&"&+"!+"#!""#%"! !&+"0+!""# Rupee E3port Cre/it Interest Rates

IEC)+No+#$"&+"!+"#!"""%"# #0+"&+!""# Rupee E3port Cre/it Interest Rates

IEC)+No+0"&+"!+"#!"""%!""# "(+"#+!""# Interest Rate on E3port Cre/it

IEC)+No+#("&+"!+"# 00%!""" !(+"(+!""" E3port Cre/it % Interest Rates

IEC)+No+#&"&+"!+"! #000%!""" #>+"(+!""" Consignment E3ports to Russian 5e/eration

against Repa-ment of State Cre/its % InterestRates on 4ost%shipment Cre/it in Rupees

IEC)+No+#!"&+"!+"##000%!""" #(+"$+!""" E3port Cre/it Interest Rate = Clarifications


























IEC)+No+'"&+"!+"#00%!""" !0+#"+#000 E3port Cre/it % Interest Rates

IEC)+No+!$"&+"!+"#0?%00 #!+"&+#000 Change of 8enor of Bill % Applicabilit- of

Concessional Rate of Interest

IEC)+No+#0"&+"!+"#0?%00 "$+"$+#000 E3port Cre/it % Interest Rates

IEC)+No+#'"&+"!+"# 0?%00 !(+"!+#000 A/7ance against )ut- )ra9back Claims

IEC)+No+##"&+"!+"# 0?%00 #$+"#+#000 E3port Cre/it % 5loriculture. <rapes an/ *therAgro 4ro/ucts

IEC)+No+'"?+#!+"# 0?%00 "?+"?+#00? <ui/elines for Sanction of Working Capital

5inance to Information 8echnolog- 1I82 an/

Soft9are In/ustr-

IEC)+No+("&+"!+"#0?%00 "'+"?+#00? E3port Cre/it % Interest Rates

IEC)+No+&#"&+"!+"# 0>%0? !0+"&+#00? E3port Cre/it % Interest Rates

IEC)+No+$?"&+"!+"! 0>%0? "!+"$+#00? 4ost%shipment 5inance in respect of E3ports

through the Warehouse%cum%)ispla- Centre at)ubai

IEC)+No+$!"&+"!+"# 0>%0? $#+#!+#00> E3port Cre/it % Rate of Interest on *7er/ue

E3port Bills

IEC)+No+$#"&+"!+"# 0>%0? $#+#!+#00> E3port Cre/it % Rate of Interest on 4ost%shipment

Rupee Cre/it

IEC)+No+!0"&+"!+"# 0>%0? !0+#!+#00> E3port Cre/it % Interest Rates on 4ost%shipmentRupee Cre/it = Clarifications







IEC)+No+!'"&+"!+"# 0>%0? #>+#!+#00> E3port Cre/it % Interest Rates on 4ost%shipmentRupee Cre/it

IEC)+No+#0"&+"!+"# 0>%0? !0+##+#00> E3port Cre/it % Interest Rates on 4ost%shipmentRupee Cre/it

IEC)+No+#?"&+"!+"# 0>%0? !'+##+#00> E3port Cre/it % Interest Rates on 4ost%shipment

Rupee Cre/it

IEC)+No+##"&+"!+"# 0>%0? !#+#"+#00> E3port Cre/it % Interest Rates

IEC)+No+0"&+"!+"# 0>%0? #!+"0+#00> E3port Cre/it % Interest Rates on 4ost%shipment

Rupee Cre/it

IEC)+No+#"&+"!+"# 0>%0? "(+">+#00> E3tension of Concessi7e Cre/it for )eeme/E3ports

IEC)+No+$!"&+"!+"# 0'%0> !(+"'+#00> E3port Cre/it % Interest Rates

IEC)+No+!0"&+"!+"# 0'%0> #>+"&+#00> 4ost%shipment 5inance in respect of E3ports

through the Warehouse%cum%)ispla- Centre at

)ubai

IEC)+No+!>"&+"!+"# 0'%0> #(+"&+#00> E3port Cre/it % Interest Rates

IEC)+No+#'"&+"!+"# 0'%0> !!+##+#00' E3tension of Concessi7e Cre/it for )eeme/

E3ports %List of MultilateralBilateral

agenciesfun/s

IEC)+No+#("&+"!+"# 0'%0> #0+##+#00' E3port Cre/it % E3port Cre/it an/ <uarantee

Corporation % Whole 8urno7er 4ost%shipment

<uarantee Scheme



IEC)+No+#""&+"!+"# 0'%0> #0+#"+#00' Interest Rates on A/7ances % 4ost%shipmentRupee Cre/it

IEC)+No+!"&+"!+"#0'%0> "$+">+#00' Interest Rates for 4ost%shipment E3port Cre/it onMe/ium an/ Long 8erm Basis 1)eferre/ Cre/it

for the 4erio/ be-on/ #?" /a-s2

IEC)+No+!""&+"!+"#0(%0' ">+"!+#00' Interest Rates on A/7ances % 4ost%shipmentE3port Rupee Cre/it

IEC)+No+$""&+"!+"!0&%0( #&+#!+#00& Rela3ations in the Area of E3port 4acking Cre/it

IEC)+No+!("&+"!+"!0&%0( #"+##+#00& Inlan/ E3port LC S-stem Co7ering the Sub%suppliers to an E3port *r/er

IEC)+No+#>"&+"!+"!0&%0( ##+#"+#00& E3port 4acking Cre/it % Rela3ations in Interest

Rates

IEC)+No+##"&+"!+"! 0&%0( "(+"0+#00& Li@ui/ation of E3port 4acking Cre/it

IEC)+No+("&+"!+"!0&%0( "&+"?+#00& E3tension of Concessi7e Cre/it for )eeme/

E3ports%List of Multilateral BilateralAgencies5un/s

IEC)+No+E5)+&!"&+"!+"!0$%0& ">+"(+#00& Consignment E3ports to CIS an/ East EuropeanCountries % Interest Rates on 4ost%shipment Cre/

IEC)+No+E5)+!$"&+"!+"!0$%0& #"+#!+#00$ E3tension of Concessi7e E3port Cre/it for)eeme/ E3ports % List of Multilateral or Bilatera

Agencies5un/s

IEC)+No+E5)+!"&+"!+"!0$%0& "!+"?+#00$ E3tension of Concessi7e E3port Cre/it for

)eeme/ E3ports



IEC)+No+#'E5)BC?#04*L% ECR0#%0! #(+#!+#00! E3port 5inance for Storing an/ Sale throughWarehouses Abroa/+

IEC)+No+('E5)BC?#04*L% ECR0#%0! #&+"$+#00! E3tension of 4re%shipment Cre/it % RunningAccount ECR0#%0! 5acilit-

IEC)+No+((E5)BC?#04*L% ECR0#%0! #!+"$+#00! 4re%shipment Cre/it for 4erio/s Be-on/ #?" )a-

IEC)+No+($E5)BC?#04*L% ECR0#%0! !0+"!+#00! Interest Rates on E3port Cre/it

IEC)+No+&>E5)BC?#04*L% ECR0#%0! !(+"#+#00! 4acking Cre/it % Running Account 5acilit-

IEC)+No+$#E5)BC?#04*L% ECR0#%0! !"+##+#00# E3tension of 4acking Cre/it % Running Account

5acilit-

IEC)+No+!(E5)BC?#04*L% ECR0#%0! "0+#"+#00# Interest Rates on E3port Cre/it

IEC)+No+!!E5)BC?#04*L% ECR0#%0! !>+"0+#00# Interest Rates on 4ost%shipment E3port Cre/it

IEC)+No+##E5)BC?#04*L% ECR0#%0! "(+"?+#00# Interest Rates on A/7ances = E3port Cre/it

IEC)+No+!E5)BC?#0%4*L% ECR0#%0! "0+">+#00# E3port Cre/it 1Interest Subsi/-2 Scheme. #0'? %

Interest on 4ost%shipment Cre/it A/Duste/ fromRupee Resources

IEC)+No+E5)+BC+&0?#0%4*L% ECR0"%0# !!+"&+#00# Interest Rates on A/7ances = E3port cre/it

IEC)+No+E5)BC&??#04*L% ECR0"%0# "!+"&+#00# Interest Rates on A/7ances % E3port Cre/it

IEC)+No+E5)BC&>?#04*L% ECR0"%0# "#+"&+#00# Interest Rates on A/7ances % E3port Cre/it



IEC)+No+E5)+BC+&&))B142%0# !'+"$+#00# )ut- )ra9back Cre/it Scheme. #0>' = <rant ofInterest% free A/7ances against = )ut- )ra9back

Entitlements un/er Bran/ Rate

IEC)+No+E5)+BC+??#0%4*L% ECR?0%0" !?+"0+#0?0 E3port Cre/it 1Interest Subsi/-2 Scheme. #0'? %

Normal 8ransit 4erio/% )eman/s Bill bills

IEC)+No+E5)+BC+!($?#0%4*L% ECR?0 !>+"(+#0?0 E3port Cre/it 1Interest Subsi/-2 Scheme. #0'? %Interest on 4ost% shipment Cre/it A/Duste/ from

Rupee Resources

IEC)+No+E5)+BC+!("$?"% ))B142%?0 !0+"&+#0?0 )ut- )ra9back Cre/it Scheme. #0>'

IEC)+No+E5)+BC+!&??#0%4*L% ECR%?0 #$+"$+#0?0 4acking Cre/it for Imports against Entitlements

un/er A/7ance Licence Import%E3port 4ass

Book Scheme

IEC)+No+E5)+BC+!&"?#0%4*L% ECR%?0 "$+"$+#0?0 E3port Cre/it 1Interest Subsi/-2 Scheme. #0'? =4ro7ision of Concessi7e Cre/it against 4rocee/s

of Che@ues. )rafts etc+ Recei7e/ )irectl- to9ar/

A/7ance 4a-ment of E3ports

IEC)+No+E5)+!#(?!!%W<MUN*)%?? #!+"?+#0?? *7erseas Ci7il Engineering Construction

Contracts% Consultanc- Ser7ices

IEC)+No+E5)+#0>?!!%W<M% N*)%?? $"+"#+#0?? 4roDect E3ports % <rant of Cre/it 5acilities toIn/ian Contractors

IEC)+No+E5)+BC+#???#0%4*L% ECR%?> "'+##+#0?> E3port Cre/it 1Interest Subsi/-2 Scheme. #0'? = 4acking Cre/it relating to the E3port of Cashe9

nuts an/ *ther Agro% base/ 4ro/ucts

IEC)+No+E5)+BC+#?#?#0%4*L% ECR%?> #"+"?+#0?> E3port Cre/it <uarantee Corporation of In/ia Lt/1EC<C2 % Realisation of Long *utstan/ing



E3port Bills = Reco7er- Efforts b- Banks

IEC)+No+E5)+BC+#'$?#0%4*LUECR%?> "&+"$+#0?> E3port Cre/it 1Interest Subsi/-2 Scheme. #0'? %

Clarification regar/ing Normal 8ransit 4erio/F

IEC)+No+E5)+BC+#($?#0%4*L% 4re%ECR%

?>

"$+"#+#0?> E3port Cre/it 1Interest Subsi/-2 Scheme. #0'? =

4re%shipment A/7ance % Concessi7e Rate of

Interest

IEC)+No+E5)+BC+#&??#0%4*L% ECR%?' !&+##+#0?' E3port Cre/it 1Interest Subsi/-2 Scheme. #0'? = Interest on A/7ances against )eman/ Bills

)B*)+No+)ir+BC+!$C+0'%?' !?+"!+#0?' 4re%shipment 5inance for E3ports

IEC)+No+E5)+BC+#$$"#(%E*%?( !#+##+#0?( E3port Cre/it to #"" percent E3port *riente/nits 1E*s2

IEC)+No+E5)+BC+#!>?#0%4*L% ECR%?( "?+#"+#0?( E3port Cre/it 1Interest Subsi/-2 Scheme. #0'? =

4ost Suppl- 5acilities against Supplies to

IBR)I)ANICE5 ai/e/ 4roDects4rogrammes

in In/ia

IEC)+No+E5)+BC+#"0?#0%4*L% ECR%?( !>+"$+#0?( 4re%shipment Cre/it to E3porters of Iron *re

IEC)+No+E5)+BC+#"$?#0%4*L% ECR%?( "&+"!+#0?( E3port Cre/it 1Interest Subsi/-2 Scheme. #0'? = <rant of 4re%shipment Cre/it % Substitution of

Contract. etc+

IEC)+No+E5)+BC+#"!?#0%4*L% ECR%?( !?+"#+#0?( E3port Cre/it % E3port of Commo/ities on

Consignment Basis

IEC)+No+E5)+BC+?'C+?#0%4*L% ECR%?& #(+"$+#0?& E3port Cre/it 1Interest Subsi/-2 Scheme. #0'? =

Repatriation of 4rocee/s of E3port Bills =



Clarification

IEC)+No+E5)+BC+?""#(+E*+?& #0+"#+#0?& E3port Cre/it to #"" percent E3port *riente/

nits 1E*s2

IEC)+No+E5)+BC+>(C+!0>142%%?$ "'+#!+#0?$ Strateg- for E3ports to Africa % E3tract from

Report of <en1Africa2Sub%<roup of Stan/ing

Committee on E3port 5inance

IEC)+No+E5)+BC+(0 6 '"C+!0> 4%?$ !"+"'+#0?$ 4acking Cre/it A/7ances to E3porters of )eoile/an/ )efatte/ Cakes = Re7ise/ )irecti7e

)B*)+No+ECC+BC+#&$.#&&C+!0> 4%?" "0+#!+#0?" 4re%shipment Cre/it = Ceiling Rate of Interest =)irecti7e

)B*)+No+ECC+BC+#>!C+!0>4%>0 "&+#!+#0>0 E3port Cre/it % E3port Cre/it an/ <uarantee

Corporation Whole 8urno7er 4ost%shipment

E3port Cre/it <uarantee Scheme

)B*)+No+ACC+BC+#">C+!0>41C2%>0 !$+">+#0>0 )ut- )ra9back Cre/it Scheme. #0>' =

A/Dustments in the Loan Accounts in the4rescribe/ 8ime

)B*)+No+ECC+BC+#"&C+!0>4% #&+">+#0>0 E3port Cre/it % E3port Cre/it an/ <uarantee

Corporation% Whole 8urno7er 4ost%shipment

<uarantee Scheme

)B*)+No+ECC+BC+?#C+!0>4%>0 "(+"'+#0>0 E3port Cre/it 1Interest Subsi/-2 Scheme. #0'? =

Repatriation of 4rocee/s to Co7er E3port Bills

)B*)+No+ECC+BC+>$C+!0>1*2 1#!2%>0 "!+"'+#0>0 E3port Cre/it % E3port of )iamon/s

)B*)+No+ACC+BC+##?C+ !0>41C2%>0 ">+"&+#0>0 )ut- )ra9back Cre/it Scheme. #0>' = Re7ise/



Accounting 4roce/ure

)B*)+No+ACC+BC+((C+!0>41C2% >0 ">+"&+#0>0 )ut- )ra9back Cre/it Scheme. #0>' =

Amen/ments

)B*)+No+ACC+BC+$?C+!0>41C2% >0 "'+"$+#0>0 )ut- )ra9back Cre/it Scheme. #0>' =

Rela3ation

)B*)+No+ECC+BC+#&.#(C+!0>4%>0 !!+"#+#0>0 E3port Cre/it % 4ost%shipment Cre/it = Ceiling

Rate of Interest = )irecti7e

)B*)+No+ECC+BC+0C+!0>4%>0 #(+"#+#0>0 A/7ances to nits in 5ree 8ra/eE3port

4romotion ones

)B*)+ACC+BC+>" C+!0>41 C2%>? #?+"(+#0>? )ut- )ra9back Cre/it Scheme. #0>'% Cre/it toLoan Account of Borro9ing Bank b- 9a- of

A/Dustment to9ar/s Repa-ment of A/7ances

ma/e b- RBI

)B*)+ECC+BC+(> C+!0>L 1I+)2 <en%>? "&+"(+#0>? E3port Cre/it% Banks A/7ise/ to *btain

Clearance for Issuing Bi/ Bon/s <uaranteesfrom Working <roup% *7erseas Construction

Contracts

)B*)+ECC+BC+&( C+!0> 1*2 1#!2%>? !0+"$+#0>? E3port Cre/it% Regar/ing Bank 5inance for

E3port *f )iamon/s

)B*)+ECC+BC+$0 6 &" C+!0> 4%>? "?+"$+#0>? E3port Cre/it%Ceiling Rate on Interest% )irecti7e

)B*)+ECC+BC+ ?!C+!0>L1&+#2%>> "&+">+#0>> E3port Cre/it% <ui/elines for 5inancing *7erseaConstruction Contracts

)B*)+ECC+BC+(( C+!0>4%>> !?+"(+#0>> 4ost%shipment Cre/it <i7en on )eferre/ 4a-men8erms% E3port *f Capital an/ 4ro/ucer <oo/s%



High Palue Engineering an/ E@uipment <oo/s

)B*)+ACC+BC+(!C+!0>41 C2%>> !(+"(+#0>> )ut- )ra9backs Cre/it Scheme. #0>'% A/7ice to

Banks to 5i3 Limits in a Realistic Manner

)B*)+ECC+BC+$#C!0>M%>>+ !0+"$+#0>> E3port Cre/it 1Interest Subsi/-2 Scheme. #0'?%

4acking Cre/it A/7ances to E3porters of H4S

<roun/nut an/ of )eoile/ an/ )efatte/ Cakes%Clarification regar/ing interest subsi/- Claims

an/ Concessional Rate of Interest

)B*)+ECC+BC+? C+!0>M%>> #$+"#+#0>> E3port Cre/it 1Interest Subsi/-2 Scheme. #0'?%

A/7ances Against n/ra9n Balances an/Retention Mone-

)B*)+ECC+BC+#(&C+!0>4%>' !>+#!+#0>' E3port Cre/it% Clarification Regar/ing Interest V? percent p+a+ on 4ost shipment Cre/it onl- on

Cre/it E3ten/e/ for the 4erio/s E3cee/ing *ne

;ear

)B*)+ACC+BC+'' C+!0>4 1 C2%>' !$+"'+#0>' )ut- )ra9backs Cre/it Scheme. #0>'%MinimumAmount to be Borro9e/ b- Banks from RBI at

*ne 8ime Being Re/uce/ to Rs+ !". """% from

Rs+# lakh+

)B*)+ECC+BC+$?C+!0>4%>' !!+"$+#0>' E3port Cre/it 1Interest Subsi/-2 Scheme. #0'?%

4acking Cre/it A/7ances

)B*)+ACC+BC+!(C+!0>4 1 C2%>' !#+"!+#0>' )ut- )ra9backs Cre/it Scheme. #0>'%A/7ice toBanks to Perif- the Bill of La/ing. etc+ at the time

of Sanctioning A/7ances n/er the Scheme

)B*)+ECC+BC+!" C+!0>4%>' "0+"!+#0>' 4re% Shipment Cre/it =A/7ice to Banks to <rant

4acking Cre/it 5acilities to ,ute Mills on the

Basis of Cable A/7ices from 5oreign Bu-ers



)B*)+ECC+BC+#0 C+!0>4%>' "0+"!+#0>' 4re%Shipment Cre/it *perational 5le3ibilit-Rela3ation in regar/ to the Substitution of

Contracts an/ 5inancing of E3port through E3por

Houses Agencies

)B*)+ECC+BC+#' C+!0>L1L52%>' "'+"!+#0>' E3port Cre/it%5inancing of Carpet E3porters =A/7ice to Banks to gi7e A/e@uate 4o9ers to

Branch ManagersRegional Managers to )ispose

of the E3port Cre/it 4roposals 4romptl-

)B*)+ECC+BC+#! C+!0>1L%##2%>' !>+"#+#0>' E3port Cre/it % E3port of Consultanc- Ser7ices =

A/7ice to Banks to E3ten/ Necessar- Support

)B*)+ECC+BC+!C+!0>L1#'2%>' ">+"#+#0>' )ut- )ra9back Cre/it Scheme. #0>'

)B*)+ECC+BC+0#C+!0>4%>( !$+#"+#0>( E3port Cre/it % E3port of <oo/s for E3hibition%cum%Sale % Concessional Rate of Interest to be

Charge/ b- Banks for Manufacture of 4ro/ucts

for Sale an/ E3hibition Abroa/

)B*)+ECC+BC+(>C+!0>4%>( #&+"?+#0>( E3port Cre/it % E3port of Consultanc- Ser7ices%Sanction of Cre/it Limits b- Banks against

Consultanc- Agreements for Meeting E3penses o

the 8echnical an/ *ther Staff

)B*)+ECC+BC+$$C+!0>4%>( #0+"&+#0>( 4ost%shipment Cre/it on )eferre/ 4a-ment 8erm

%A/7ice to Banks to Charge the Interest at aConcessional Ceiling Rate of ? percent p+a+ for a

4erio/ E3cee/ing *ne ;ear

)B*)+BM+BC+>C+!0>4%>& #!+"#+#0>& E3port Cre/it % A/7ice to Banks to Oeep a Close

Watch *n the tilisation of E3port Cre/it 9ithReference to both the Quantum an/ the 4erio/

)B*)+BM+BC+?#C+!0>M%>$ #?+">+#0>$ 4re%shipment Cre/it Scheme an/ E3port Cre/it1Interest Subsi/-2 Scheme. #0'? % 4acking Cre/it



5acilities against Supplies to IBR)I)ANICE5 ai/e/ 4roDects4rogrammes in In/ia

Eligible for both for Refinance an/ Interest

Subsi/-

)B*)+BM+BC+(?C+!0>4%>$ $#+"(+#0>$ 4re%shipment Cre/it Scheme % E3port of 4reciousan/ Semi%precious Stones. 4earls an/ S-nthetic

Stones =Clarification that 4acking Cre/it

A/7ances ma- be A/Duste/ b- 8ransfer of the*utstan/ing Balance to a Special 14ost%shipment2

Account

)B*)+BM+BC+#!"C+!0>4%>! "'+#!+#0>! 4acking Cre/it A/7ances to Miners of Iron *re in

<oa 9ho Suppl- *re to E3porters for E3port

)B*)+BM+BC+0>C+!0>1M2%>! $"+#"+#0>! 4re%shipment Cre/it Scheme an/ E3port Cre/it

1Interest Subsi/-2 Scheme. #0'? % CashIncenti7es. )ut- )ra9backs. etc+ % Clarification

regar/ing EC<C Scheme

)B*)+BM+BC+>&C+!0>1M2%>! $"+"?+#0>! 4re%shipment Cre/it Scheme an/ E3port Cre/it

1Interest Subsi/-2 Scheme. #0'? % Cash

Incenti7es. )ut- )ra9backs. etc

)B*)+BM+BC+>"C+!0>4%>! "0+"?+#0>! 4acking Cre/it A/7ances relating to E3port of

Mineral *res

)B*)+BM+BC+'!C+!0>1M2%># !#+"(+#0># 4re%shipment Cre/it Scheme an/ E3port Cre/it

1Interest Subsi/-2 Scheme. #0'? % A/7ice to

Banks to keep a close 9atch not onl- on the en/%use of the finance but also for the timel-

fulfilment of E3port *r/ers an/ to Scrutinise

Applications for E3tension of time carefull-

)B*)+Sch+BC+(#C+0'%># #'+"&+#0># 4acking Cre/it an/ 4ost%shipment Cre/it =Interest Rates Structure % Ceiling of > percent per

annum for 4acking Cre/it an/ 4ost%shipment



Cre/it other than Cre/its 4ro7i/e/ for E3porterson )eferre/ 4a-ment 8erms

)B*)+BM+'&C+!0>4%>" #!+"#+#0>" 4re%shipment Cre/it Scheme % E3port of 4reciousSemi%precious Stones. 4earls an/ S-nthetic

Stones

)B*)+BM+##(!C+!0>1M2%'0 ##+">+#0'0 A/7ances to Sche/ule/ Banks un/er Section#>1$A2 of RBI Act % A/7ances to E3porters 9ho

/o not ha7e Letters of Cre/it or E3port *r/ers in

their *9n Name an/ 9ho Route their E3ports

through State 8ra/ing Corporation. Minerals an/Metals 8ra/ing Corporation an/ other E3port

Houses = Clarification

)B*)+BM+#"'&C+!0>4%'0 "#+">+#0'0 4re%shipment Cre/it Scheme in respect of E3port

of )iamon/s

)B*)+BM+#"&"C+!0>4%'0 !>+"'+#0'0 4re%shipment Cre/it Scheme%A/7ances to 8anner9ho Suppl- Leather <oo/ to State 8ra/ing

Corporation for 5ee/ing Leather Articles to be

E3porte/%8o be treate/ as 4acking Cre/it

)B*)+BM+0?&C+!0>4%'0 #0+"'+#0'0 4re%shipment Cre/it Scheme%Certain A/7ances toConstruction Contractors to be treate/ as 4acking

Cre/it

)B*)+BM+'?!C+!0>O%'0 ">+"&+#0'0 E3port Cre/it =Charging of Interest

)B*)+BM+(??C+!0>A%'0 !'+"$+#0'0 Refinancing of 4acking Cre/it A/7ances relating

to E3port of *res through Minerals an/ Metals

8ra/ing Corporation

)B*)+BM+!(&C+!0>A%'0 #&+"!+#0'0 4acking Cre/it A/7ances%Clarification%<rant of

such A/7ances shoul/ not be Con/itional on a



Letter of Cre/it being opene/

)B*)+BM+#&?0C+!0>A%'? ">+##+#0'? 4acking Cre/it A/7ances%4erio/ for 9hich such

a/7ances ma- be gi7en%Clarification

)B*)+BM+##>0C+!0>A%'? #0+"?+#0'? Refinancing of 4acking Cre/it A/7ances relating

to E3port of Cashe9 nuts%Stage from 9hich

Ma3imum Rate of Interest applicable%5urtherClarification

)B*)+BM+0>&C+!0>A%'? !>+"'+#0'? 4acking Cre/it 5acilities relating to E3port of

Cashe9 nuts

)B*)+BM+>?( C+!0>A%'? #?+"(+#0'? 4acking Cre/it 5acilities relating to E3port of

Cashe9 nuts

)B*)+ BM+((?C+!0>A%'? "'+"&+#0'? 4acking Cre/it 5acilities to E3porters

)B*)+BM+!>$!C+!0>O%'$ #$+"$+#0'$ E3port Bills Cre/it Scheme%Salient 5eatures of

the Scheme%4roce/ure

*ppendix

.ist o, Circulars consolidated 5y t0e Master Circular onE$PORT CRE%T " FORE!" CURRE"C#

Circular "o( %ate Su5Hect

)B*)+)ir+No+#"""&+"!+""#!"##%#! "&+"(+!"#! )eregulation of Interest Rates on E3port Cre/it

in 5oreign Currenc-

)B*)+)IR+No+0#"&+"!+""#!"##%#! $"+"$+!"#! Interest Rates on E3port Cre/it in 5oreign







Currenc-

)B*)+)ir+No+(!+"&+"!+""#!"##%#! #(+##+!"## Interest Rates on E3port Cre/it in 5oreign

Currenc-

)B*)+)IR+1E3p2+No+ >'"&+"!+""#!""0%

#"

#0+"!+!"#" Interest Rates on E3port Cre/it in 5oreign

Currenc-

)B*)+)IR+

1E3p2+BC+No+ ">"&+"!+"!!""0%#"

"#+">+!""0 Master Circular on Rupee 5oreign Currenc-

E3port Cre/it 6 Customer Ser7ice to E3porters

)B*)+)ir 1E3p2No#">"&+"!+"#!""?%"0 "(+"!+!""0 Interest Rates on E3port Cre/it in 5oreign

Currenc-

)B*)+)ir 1E3p2No>? "&+"!+"#!""(%"' #?+"&+!""' Interest Rates on E3port Cre/it in 5oreignCurrenc-

)B*)+IECS+No+'' "&+"!+"! !""&%"( $#+#!+!""& 5oreign Currenc- loans to E3porters%

4erio/icit- of charging interest

IEC) No+#!"&+"!+"!!""$%"& #?+"(+!""& <ol/ Car/ Scheme for E3porters

IEC) No+#!"&+"!+"!!""!%"$ $#+"#+!""$ E3port Cre/it in 5oreign Currenc-%Sources of

fun/s

IEC) No+0"&+"!+"!!""!%"$ $#+#"+!""! E3port Cre/it = Li@ui/ation of 4acking Cre/it

an/ con7ersion of /ra9als un/er rupee packing

cre/it into 4C5C+

IEC)+No+!#"&+"!+"#!""#%"! !0+"&+!""! Interest Rates on E3port Cre/it in 5oreign

Currenc-

IEC)+No+#&"&+"!+"#!"""%"# #0+"&+!""# Interest Rates on E3port Cre/it in 5oreign































Currenc-

IEC)+No+#$"&+"!+"!#000%!""" #>+"(+!""" 4re%shipment Cre/it in 5oreign Currenc-

14C5C2 to E3porters *perating un/er )iamon/)ollar Account Scheme

IEC)+No+&>$?&""&+ "!+"#0>%0? ##+"'+#00? E3port Cre/it in 5oreign Currenc-

IEC)+No+!?"&+"!+"#0'%0> #>+"&+#00> E3tension of 5acilit- of 4re%shipment Cre/it in

5oreign Currenc- 14C5C2

IEC)+No+!!"&+"!+"#0(%0' !0+"!+#00' E3port Cre/it = 4C5C

IEC)+No+#("&+"!+#(0(%0' !!+#!+#00( E3ports to Asian Clearing nion Countries %

<ranting of E3port Cre/it in 5oreign Currenc-un/er 4re%shipment Cre/it in 5oreign

Currenc- 14C5C2. an/ E3port Bills

Re/iscounting Scheme 1EBR2

IEC)+No+E5)+&""&+ "!+#(0&%0( #?+"&+#00( 4re%shipment Cre/it in 5oreign

Currenc-14C5C2 % 5or9ar/ E3change Co7er

IEC)+No+$""&+"!+"!0&%0( #&+#!+#00& Rela3ations in the Area of E3port 4acking

Cre/it

IEC)+No+!>"&+"!+#(0&%0( #&+##+#00& Sharing of 4acking Cre/it un/er 4C5C

IEC)+No+#$"&+"!+"!0&%0( !'+"0+#00& 4re%shipment Cre/it in 5oreignCurrenc-14C5C2 Scheme = Supplies from one

E*E4 nit to another E*E4 nit

IEC)+No+#""&+"!+#(0&%0( "$+"0+#00& E3port 5inancing in 5oreign Currencies





IEC)+No+E5)+&$"&+ "!+#(0$%0& #?+"(+#00& 4re%shipment Cre/it in 5oreignCurrenc-14C5C2 = E3tension of Running

Account 5acilit-

IEC)+No+E5)+$>"&+ "!+#(0$%0& $"+"$+#00& 4re%shipment Cre/it in 5oreign

Currenc-14C5C2 % Clarifications Rela3ations

IEC)+No+E5)+$!"&+ "!+##0$%0& "$+"$+#00& Re/iscount of E3port Bills Abroa/ an/ 4re%shipment Cre/it in 5oreign Currenc- 14C5C2 %

Withhol/ing 8a3

IEC)+No+E5)+$#"&+ "!+#(0$%0& "$+"$+#00& 4re%shipment Cre/it in 5oreign

Currenc-14C5C2 % E3tension of RunningAccount 5acilit- for E3port of )iamon/s

IEC)+No+E5)+$""&+ "!+#(0$%0& !?+"!+#00& 4re%shipment Cre/it in 5oreignCurrenc-14C5C2 = Clarifications

IEC)+No+E5)+!#"&+ "!+#(0$%0& "?+##+#00$ 4re%shipment Cre/it in 5oreign Currenc-

14C5C2

IEC)+No+E5)+#&"&+ "!+##0$%0& "'+#"+#00$ Re/iscounting of E3port Bills Abroa/

*ppendix

.ist o, Circulars consolidated 5y t0e Master Circular onE$PORT CRE%T - CUSTOMER SER'CE

!ircular No, -ate Sub.ect

)B*)+)IR+N*+$&"&+"!+""#!"#!%#$ "#+"?+!"# A/7ances% *ut of pocket e3penses





!

)B*)+)ir+1E3p2BC+No+$?"&+"!+"#

1W<2!""'%"> #&+##+!""'

Recommen/ations of the Working <roup to

Re7ie9 E3port Cre/it

)B*)+)ir+1E3p2BC+No+'#"&+"!+"#

1W<2!""(%"'

">+"!+!""

'

Recommen/ations of the Working <roup to

Re7ie9 E3port Cre/it

)B*)+IECS+No+&$"&+"!+#"!""&%"(

#>+"0+!""&

Win/ing up of the State Le7el E3port

4romotion Committee 1SLE4C2 an/constitution of a separate Sub%Committee

un/er State Le7el Bankers Committee

IEC)+ No+ #&"#+"#+&$!""$%"&$"+"'+!""

&

Merger of functions of In/ustrial an/ E3port

Cre/it )epartment of Reser7e Bank of In/ia

9ith its other )epartments

IEC) No+ #! "&+"!+"!!""$%"& #?+"(+!""&

<ol/ Car/ Scheme for E3porters

IEC) No+ #$ "&+"!+"#!""$%"& #?+"(+!""&

Rupee E3port Cre/it Interest Rates forCar/ Hol/er E3porters

IEC)+No+!$"&+"!+"!!""#%"! ">+"(+!""

!

Concessi7e Rupee E3port Cre/it for )eeme/

E3ports

IEC) No+!#"&+"!+"#!""#%"! !0+"&+!""

!

Interest Rates on E3port Cre/it in 5oreign

Currenc-

IEC)+No+$"&+"!+"!!""#%"!$"+"?+!""

#

Cre/it E3ten/e/ to )iamon/ E3porters%Embargo on Import of Conflict )iamon/s =

Liberia

IEC)+No+>"&+"!+"!!"""%!""# "(+#!+!"" Cre/it E3ten/e/ to )iamon/ E3porters%



























" Embargo on Import of Conflict )iamon/s

IEC)+No+&"&+"!+"!!"""%!""# #"+#"+!""

"

E3port Cre/it % Suggestions from E3porters

for Impro7ement in 4roce/ures % Action 4oint

IEC)+No+#"&+"!+"!!"""%!""# #$+">+!""

"

Cre/it E3ten/e/ to )iamon/ E3porters%

Embargo on Import of Conflict )iamon/s

IEC)+No+$"&+"!+"#00%!""" ">+"0+#00

0

Simplification of 4roce/ures for )eli7er- of

E3port Cre/it

IEC)+No+#>"&+"!+"#0?%00!?+"!+#00

0

E3port Cre/it in 5oreign Currenc- at

Internationall- Competiti7e Rates %Simplification of 4roce/ures

IEC)+No+E5)+$""&+"!+"!0>%0?$#+#!+#00

>Statistics relating to E3port Cre/it

IEC)+No+E5)+!>"&+"!+"!0(%0'"(+"'+#00

'

Statistics relating to E3port Cre/it %

Submission of ReturnsStatements b- Banks

IEC)+No+E5)+&?"&+"!+"!0&%0(!!+"(+#00

(Statistics relating to E3port Cre/it

IEC)+No+0"&+"!+"!0&%0(!0+"?+#00

&E3port Cre/it % 4erformance In/icator forBanks

IEC)+No+E5)+&("&+"!+"!0$%0& !$+"(+#00& Statistics relating to E3port Cre/it

IEC)+No+E5)+!!"&+"!+"!0$%0&"?+#!+#00

$

Report of the Committee on Structure of

E3port Cre/it = Streamlining of Sanctioning

4roce/ure for Loans an/ A/7ances 9ith4articular Reference to E3port Cre/it









IEC)+No+E5)+#?"&+"!+"!0$%0&!"+#"+#00

$4a-ment of Compensation to the E3porters inrespect of )ela-e/ Cre/it of E3port Bills

IEC)+No+E5)+#??#0%4*L ECR0!%0$ !'+#!+#00!

E3port Cre/it 8arget

IEC)+No+?E5)?#0%4*L%ECR0!%0$ "(+##+#00!

)ela- in Sanction of Loan Limits to

Borro9ers 9ith 4articular Reference toE3porters

IEC)+No+$E5)BC?#04*L% ECR0!%0$!&+"?+#00

!Statistics relating to E3port Cre/it

)B*)+No+B4+BC+(?C+&'0%0#">+#!+#00

#)ela-s E3perience/ b- the E3porters at Banks

IEC)+No+E5)+#>""$%SEM0#%0!$#+"?+#00

#5inancing of E3ports

IEC)+No+E5)+BC+&"?#0%4*L% ECR%0#"&+"$+#00

#

4ro7ision of 8imel- an/ A/e@uate E3port

Cre/it

IEC)+No+E5)BC$(?#04*L% ECR0"%0##(+"#+#00

#Statistics relating to E3port Cre/it

IEC)+No+E5)+BC+#0#?#0%4*L% ECR%?> !&+##+#0?>5inancing of E3ports % 8imel- an/ A/e@uate

4ro7ision of E3port Cre/it

)B*)+No+B4+BC+&>C+&'0 1W2%?>"?+#"+#0?

>4roblems 5ace/ b- E3porters

)B*)+No+B4+BC+>$C+&'0 1W2%?&"!+"?+#0?

&4roblems 5ace/ b- E3porters



IEC)+No+E5)+BC+!&?#0%4*L% ECR%?&!?+"(+#0?

&5inancing of E3ports % Efficienc- of Banksan/ Qualit- of Customer Ser7ices

)B*)+No+ECC+BC+'>C+!0>L1#!2 =?# "!+"'+#0?#

Statistics relating to E3port Cre/it =Submission of Statements %

)B*)+ECC+BC+($C+!0>4%>?#>+"&+#0>

?

5inancing of E3ports % Nee/ for Counselling

Small E3porters an/ E3porters of Non%tra/itional Items

)B*)+BM+'?"C+!0>O%'0">+"&+#0'

0*pening of E3port Counsel *ffices b- Banks

(ANBC is Net Bank Credit (NBC) plus investments made by banks in non-SLR bonds held in Held to Maturity (HM) !ate"ory# a!hievement o$ the banks %ould be assessed in terms o$ ANBC or !redit e&uivalent amount o$ '$$-Balan!e Sheet posure ('B%hi!hever is hi"her# he 'B $or a number o$ banks (most o$ them $orei"n banks) %as at a mu!h hi"her level# +urther* +CNR (B) deposand NRNR deposits are not dedu!ted $rom NBC#)

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Interest Subvention Scheme

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