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RBI Extends Rupee Export Credit Interest Rate Caps to April 2008

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2007-08/168 · issued 29 Oct 2007 · ~2 min read

Quick answerRBI has extended the validity of existing interest rate ceilings on rupee export credit until April 30, 2008. Banks must continue to charge rates not exceeding BPLR minus 2.5 percentage points for most categories, with a special sub-ceiling of BPLR minus 4.5 percentage points for certain exporters.

What changed

The validity of interest rate ceilings on rupee export credit, originally set in April 2007, has been extended from October 31, 2007 to April 30, 2008. A new directive effective November 1, 2007 formalizes the rates in an annex, replacing the earlier circular's expiry date. The special lower cap of BPLR minus 4.5 percentage points for pre-shipment credit up to 180 days and post-shipment credit up to 90 days remains in place for specific exporter categories until March 31, 2008.

What it means for you

Banks must continue to apply the same ceiling rates on rupee export credit, ensuring predictable borrowing costs for exporters. The extension provides regulatory stability for lenders in pricing export loans, but the BPLR minus 2.5 percentage points cap may compress margins if BPLR rises. The separate, tighter cap for certain exporters requires careful monitoring to avoid overcharging.

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 internal systems to apply the ceiling rates (BPLR minus 2.5 percentage points) for all eligible export credit categories from November 1, 2007 to April 30, 2008.
Ensure that for pre-shipment credit up to 180 days and post-shipment credit up to 90 days, rates do not exceed BPLR minus 4.5 percentage points for the specific exporter categories mentioned in earlier circulars.
Review and adjust any export credit pricing that may have been set based on the previous expiry date to comply with the extended validity.
Communicate the extended rate validity to relevant branches and export credit processing teams to prevent pricing errors.

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 teams managing BPLR-linked lending

❓ Common questions

Regulatory timeline

Stated effective date effective November 1, 2007
Decoded by BankPulse 2026-06-19 15:04 IST
extended_by — Rupee Export Credit Interest Rates Extended to Oct 2008
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 05 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 validity period for the export credit interest rate ceilings?

The ceilings are now valid from November 1, 2007 to April 30, 2008, as per the directive issued on October 29, 2007.

Are banks allowed to charge rates below the ceiling?

Yes, the ceiling rates are maximum rates; banks are free to charge any rate below them, as stated in the annex note.

Does the special BPLR minus 4.5 percentage points cap still apply?

Yes, for pre-shipment credit up to 180 days and post-shipment credit up to 90 days, the cap of BPLR minus 4.5 percentage points continues for certain exporter categories until March 31, 2008.

📜 This document’s life story (2 recorded events, each backed by RBI’s own words)

Extended by Rupee Export Credit Interest Rates Extended to Oct 2008

RBI’s words: “The validity of the interest rates on rupee export credit indicated in the above circular would now remain in force up to October 31, 2008.”

Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)

RBI’s words: “Official withdrawal register entry #2331: DBOD.Dir.(Exp).BC.No.40/04.02.01/2007-08 — "Interest Rates on Advances" dated October 29, 2007”

📜 Read the original circular — full text as issued by RBI

RBI/2007-08/168 
 DBOD.Dir.(Exp).BC.No.  41 /04.02.01/2007- 08 
 October 29, 2007
 All Scheduled Commercial Banks 
 (excluding RRBs) 
 Dear Sir,
 Rupee Export Credit Interest Rates 
 Please refer to our circular  DBOD.Dir.(Exp.)No.80/04.02.01/2007-08 dated April 17, 2007  on the captioned subject.
 2. The validity of the interest rates on rupee export credit indicated in the above circular would now remain in force upto April 30, 2008.  In this connection, you may please refer to RBI  circular No.MPD.BC.295/07.01.279/2007-08 dated October 25, 2007.  The rates of interest applicable have been incorporated in the Annexure to the Directive  DBOD.No.BC.40 /04.02.01/2007-08 dated October 29,  2007  enclosed to this circular.
 3. Moreover, banks would continue to charge interest rates not exceeding BPLR minus 4.5 percentage points on pre-shipment credit up to 180 days and post-shipment credit up to 90 days on the outstanding amount for the period April 1, 2007 to March 31, 2008 to the categories of exporters as mentioned in circulars  DBOD.Dir.(Exp.)BC.No.22/04.02.01/2007-08  and  DBOD.Dir.(Exp.)BC.No.34B/ 04.02.01/2007-08  issued by the Reserve Bank on July 13, 2007 and October 6, 2007 respectively.
 Yours faithfully,
 (P.Vijaya Bhaskar) 
 Chief General Manager 
 DBOD.Dir.(Exp).BC.No.40/04.02.01/2007-08
 October 29, 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 November 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 November 1, 2007 to April 30, 2008 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/2007-08/168 · issued 29 Oct 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=3909&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.