Rupee Export Credit Interest Rates Extended Till Oct 2007
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2006-2007/326 · issued 17 Apr 2007 · ~2 min read
Quick answerRBI extended the validity of existing rupee export credit interest rate ceilings (BPLR minus 2.5%) from May 1 to October 31, 2007. Banks must apply these caps on pre-shipment and post-shipment credit for specified tenors, while rates beyond those tenors remain deregulated.
What changed
The previous circular's interest rate validity on rupee export credit, which was set to expire earlier, has been extended to October 31, 2007. The new directive, effective May 1, 2007, formalizes the same ceiling rates (BPLR minus 2.5 percentage points) for specified categories of export credit.
What it means for you
Banks must continue to cap interest rates on eligible rupee export credit at BPLR minus 2.5% for the extended period, ensuring affordable credit for exporters. For tenors beyond the specified limits, banks retain full freedom to set rates based on BPLR and spread guidelines, allowing flexibility for longer-term export financing.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Update your lending systems to apply the BPLR minus 2.5% ceiling on all eligible pre-shipment and post-shipment export credit from May 1 to October 31, 2007.
Ensure that for tenors beyond the prescribed limits (e.g., pre-shipment beyond 180 days), interest rates are set as per your bank's BPLR and spread policy.
Communicate the extended validity to your export credit teams and loan officers to avoid any compliance gaps.
Who it affects
All scheduled commercial banks (excluding RRBs) offering rupee export credit, Exporters availing pre-shipment and post-shipment credit in rupees, Bank treasury and credit policy teams managing BPLR-linked lending
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn05 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the new interest rate ceiling for rupee export credit?
The ceiling remains BPLR minus 2.5 percentage points per annum for specified categories, effective from May 1 to October 31, 2007.
Are banks allowed to charge lower rates than the ceiling?
Yes, banks are free to charge any rate below the ceiling, as these are maximum rates.
What happens to export credit tenors beyond the specified limits?
Interest rates for tenors beyond the prescribed periods (e.g., pre-shipment over 180 days) are deregulated, and banks can set rates based on BPLR and spread guidelines.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
RBI’s words: “the extant instructions relating to interest rates on rupee export credit governed by the aforementioned circular dated April 17, 2007 would stand amended”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
📜 Read the original circular — full text as issued by RBI
RBI/2006-2007/326
DBOD.Dir.(Exp).BC.No.80/04.02.01/2006-07
April 17, 2007
All Scheduled Commercial Banks
(excluding RRBs)
Dear Sir,
Rupee Export Credit Interest Rates
Please refer to our circular DBOD.Dir.(Exp.)No.37/04.02.01/2006-07 dated October 20, 2006 on the captioned subject.
The validity of the interest rates on rupee export credit indicated in the above circular would now remain in force upto October 31, 2007. In this connection, you may please refer to RBI circular No.MPD.BC.291/07.01.279/2006-07 dated April 12, 2007. The rates of interest applicable have been incorporated in the Annexure to the Directive DBOD.No.BC.79/04.02.01/2006-07 dated April 17, 2007 enclosed to this circular.
Yours faithfully,
(P.Vijaya Bhaskar)
Chief General Manager
DBOD.Dir.(Exp).BC.No. 79 /04.02.01/2006-07
April 17, 2007
Interest Rates on Advances
In exercise of the powers conferred by Sections 21 and 35 A of the Banking Regulation Act, 1949, the Reserve Bank of India, being satisfied that it is necessary and expedient in the public interest so to do, hereby directs that, with effect from May 01, 2007 the interest rates on rupee export credit would be as indicated in the Annex enclosed to this Directive.
( Anand Sinha )
Executive Director
ANNEX
Interest Rates on Rupee Export Credit of
Scheduled Commercial Banks
Interest Rates effective from May 1, 2007 to October 31, 2007 will be not exceeding BPLR minus 2.5 percentage points per annum for the following categories of Export Credit.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-2007/326 · issued 17 Apr 2007. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=3423&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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