Rupee Export Credit Interest Rates Extended to Oct 2008
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2007-2008/301 · issued 28 Apr 2008 · ~2 min read
Quick answerRBI extended the validity of rupee export credit interest rate ceilings to October 31, 2008, with new rates effective from May 1, 2008. Banks must continue charging rates not exceeding BPLR minus 2.5 percentage points for specified tenors. Interest subvention on export credit was extended for one year from April 1, 2008 to March 31, 2009.
What changed
The validity of interest rates on rupee export credit, previously set in October 2007, was extended to remain in force up to October 31, 2008. The new rates apply from May 1, 2008 to October 31, 2008. Additionally, interest subvention on export credit was extended by one year from April 1, 2008 to March 31, 2009, maintaining the same terms as on March 31, 2008.
What it means for you
Banks must continue to apply the ceiling rates on rupee export credit as per the Annex, with rates not exceeding BPLR minus 2.5 percentage points for pre-shipment credit up to 180 days and post-shipment credit up to 90 days. The subvention extension ensures exporters benefit from lower effective interest costs for another year, supporting export competitiveness.
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 export credit categories from May 1, 2008 to October 31, 2008.
Ensure interest subvention on export credit is passed on to eligible exporters for the period April 1, 2008 to March 31, 2009, as per earlier circulars.
Communicate the extended validity and subvention details to all branches handling export credit.
Review and adjust any floating-rate export credit products to comply with the ceiling rates.
Who it affects
All scheduled commercial banks (excluding RRBs), Exporters availing rupee export credit, Bank branches handling pre-shipment and post-shipment credit
❓ Common questions
Regulatory timeline
Stated effective dateeffective from May 1, 2008
Decoded by BankPulse2026-06-19 14:09 IST
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 are the new interest rate ceilings for rupee export credit?
From May 1, 2008 to October 31, 2008, banks cannot charge more than BPLR minus 2.5 percentage points per annum for pre-shipment credit up to 180 days and post-shipment credit up to 90 days, among other categories listed in the Annex.
Is the interest subvention on export credit still available?
Yes, the subvention has been extended by one year from April 1, 2008 to March 31, 2009, on the same terms as on March 31, 2008. Banks must continue charging rates not exceeding BPLR minus 4.5 and 6.5 percentage points for pre-shipment and post-shipment credit respectively for eligible exporters.
Does this circular affect export credit beyond the specified tenors?
No, interest rates for export credit beyond the tenors mentioned (e.g., pre-shipment beyond 180 days) are deregulated, and banks are free to set rates based on BPLR and spread guidelines.
📜 Read the original circular — full text as issued by RBI
RBI/2007-2008/301
DBOD.Dir.(Exp).BC.No. 77/04.02.01/2007- 08
April 28, 2008
All Scheduled Commercial Banks
(excluding RRBs)
Dear Sir,
Rupee Export Credit Interest Rates
Please refer to our circular DBOD.Dir.(Exp.)No.41/04.02.01/2007-08 dated October 29, 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 up to October 31, 2008. In this connection, you may please refer to RBI circular No.MPD.BC.298/07.01.279/2007-08 dated April 25, 2008 . The rates of interest applicable have been incorporated in the Annex to the Directive DBOD.Dir.(Exp.)BC.No.76/04.02.01/2007-08 dated April 28, 2008 enclosed to this circular.
3. Moreover, interest subvention on export credit has been extended by one more year from April 1, 2008 till March 31, 2009 on the terms and conditions as they existed on March 31, 2008 vide circular DBOD.Dir.(Exp)BC.No.73/ 04.02.01/2007-08 dated April 25, 2008 . Accordingly, banks would continue to charge interest rates not exceeding BPLR minus 4.5 and 6.5 percentage points on pre-shipment credit up to 180 days and post-shipment credit up to 90 days on the outstanding amount for a further period starting from April 1, 2008 to March 31, 2009 to the categories of exporters as detailed in circulars DBOD.Dir.(Exp.)BC.No.22/04.02.01/2007-08 , DBOD.Dir.(Exp.)BC.No.34B/4.02.01/2007-08 and DBOD.Dir.(Exp).BC.No.54/04.02.01/2007-08 , issued by the Reserve Bank on July 13, 2007, October 6, 2007 and November 30,2007 respectively.
Yours faithfully,
( P.Vijaya Bhaskar )
Chief General Manager
DBOD.Dir.(Exp).BC.No.76/04.02.01/2007-08
April 28, 2008
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, 2008 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, 2008 to October 31, 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/2007-2008/301 · issued 28 Apr 2008. 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=4148&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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