RBI Extends Rupee Export Credit Interest Rate Cap Till April 2009
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2008-09/250 · issued 28 Apr 2008 · ~2 min read
Quick answerRBI has extended the validity of existing interest rate caps on rupee export credit until April 30, 2009. Banks must continue to charge no more than BPLR minus 2.5 percentage points for specified pre- and post-shipment credit categories, effective November 1, 2008.
What changed
The validity of the interest rate ceilings on rupee export credit, originally set in April 2008, has been extended from the earlier expiry date to April 30, 2009. The rates themselves remain unchanged: for specified categories, the ceiling is BPLR minus 2.5 percentage points. The directive is effective from November 1, 2008.
What it means for you
Banks must continue to offer export credit at capped rates for the extended period, which may compress margins if BPLR remains high. The extension provides stability for exporters but limits banks' flexibility to raise rates on these loans. For tenors beyond the specified periods, rates remain fully deregulated, allowing banks to set their own spreads.
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 percentage points ceiling for eligible export credit categories from November 1, 2008 to April 30, 2009.
Ensure that for tenors beyond the prescribed limits (e.g., pre-shipment beyond 180 days), interest rates are set freely based on BPLR and spread guidelines.
Communicate the extended validity to your export credit teams and treasury to avoid any compliance gaps.
Monitor BPLR movements to assess margin impact on the capped export credit portfolio.
Who it affects
All scheduled commercial banks (excluding RRBs) offering rupee export credit, Exporters availing pre-shipment and post-shipment credit, Bank treasury and credit policy teams
❓ Common questions
Regulatory timeline
Stated effective dateeffective November 1, 2008
Decoded by BankPulse2026-06-19 11:51 IST
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?
For specified categories like pre-shipment credit up to 180 days and post-shipment usance bills up to 90 days, the ceiling remains BPLR minus 2.5 percentage points per annum.
Does this circular change any interest rates?
No, it only extends the validity of the existing rates until April 30, 2009. The rates themselves are unchanged from the April 2008 circular.
Are banks allowed to charge below the ceiling?
Yes, the ceiling is a maximum rate. Banks are free to charge any rate below it.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #2058: DBOD.Dir.(Exp).BC.No.67/04.02.01/2008-09 — "Interest Rates on Advances" dated October 24, 2008”
📜 Read the original circular — full text as issued by RBI
RBI/2008-09/250
DBOD.Dir.(Exp).BC.No. 68 /04.02.01/2008- 09
October 24 , 2008
All Scheduled Commercial Banks
(excluding RRBs)
Dear Sir,
Rupee Export Credit Interest Rates
Please refer to our circular DBOD.Dir.(Exp.)No.77/04.02.01/2007-08 dated April 28, 2008 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 April 30, 2009. In this connection, you may please refer to RBI circular No.MPD.BC. 307 /07.01.279/2008-09 dated October 24, 2008 . The rates of interest applicable have been incorporated in the Annexure to the Directive DBOD.Dir.(Exp).BC.No. 67 /04.02.01/2008-09 dated October 24, 2008 enclosed to this circular.
Yours faithfully,
( P.Vijaya Bhaskar )
Chief General Manager
DBOD.Dir.(Exp).BC.No. 67 /04.02.01/2008-09
October 24 , 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 November 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 November 1, 2008 to April 30, 2009 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/2008-09/250 · 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=4585&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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