RBI Extends Concessional Post-Shipment Export Credit Tenor to 180 Days
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2008-09/299 · issued 28 Nov 2008 · ~2 min read
Quick answerRBI has extended the concessional interest rate (BPLR minus 2.5%) on post-shipment rupee export credit from 90 to 180 days, effective November 28, 2008, to support exporters facing weak external demand.
What changed
The RBI extended the period for which post-shipment rupee export credit can be availed at the concessional rate of BPLR minus 2.5 percentage points from 90 days to 180 days. This change took effect from November 28, 2008, and applies until April 30, 2009. The revised tenor is now reflected in the updated annexure to the directive.
What it means for you
Banks must now offer the lower interest rate on post-shipment export credit for up to 180 days instead of the earlier 90-day limit, providing longer working capital support to exporters. This will reduce the interest cost for exporters during the extended period, but banks may see a slight dip in net interest margins on these loans. The move is temporary, valid until April 30, 2009, and aims to cushion exporters from the global demand slowdown.
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 bank's lending system to apply the BPLR minus 2.5% ceiling on post-shipment rupee export credit for tenors up to 180 days.
Communicate the revised tenor to your export credit processing teams and branch managers handling trade finance.
Monitor the expiry of this temporary relief on April 30, 2009, and plan for reversion to standard tenor limits.
Ensure compliance with the directive by reviewing all post-shipment credit sanctions issued from November 28, 2008.
Who it affects
All scheduled commercial banks (excluding RRBs) offering rupee export credit, Exporters availing post-shipment finance, Trade finance and credit departments of banks
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).
Does this extension apply to pre-shipment credit as well?
No, the extension only applies to post-shipment rupee export credit. Pre-shipment credit remains at the existing tenor limits (up to 270 days) as per the annexure.
Can banks charge a rate lower than BPLR minus 2.5%?
Yes, the rate is a ceiling, so banks are free to offer lower rates if they choose, as per the note in the directive.
Is this change permanent?
No, the revised interest rates and tenor are effective only from November 28, 2008, to April 30, 2009, after which the earlier limits may apply unless further extended.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
RBI’s words: “extend the validity of the above dispensation up to October 31, 2009”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #2021: DBOD.Dir.(Exp).BC.No.87/04.02.01/2008-09 — "Rupee Export Credit Interest Rates - Extension of Period of Credit" dated November 28, 2008”
📜 Read the original circular — full text as issued by RBI
RBI/2008-09/299
DBOD.Dir.(Exp).BC.No. 88/04.02.01/2008- 09
November 28, 2008
All Scheduled Commercial Banks
(excluding RRBs)
Dear Sir,
Rupee Export Credit Interest Rates-Extension of period of credit
Please refer to our circular DBOD.Dir.(Exp.)No.80/04.02.01/2008-09 dated November 15, 2008 on the captioned subject.
2. In view of the difficulties faced by exporters on account of the weakening of external demand, it has been decided that the prescribed interest rate of BPLR minus 2.5 percentage points as applicable on Post-shipment Rupee Export Credit may be extended up to 180 days (as against existing up to 90 days) with effect from November 28, 2008.
3. The revised period of credit has been incorporated in the Annexure to the Directive DBOD.Dir.(Exp).BC.No. 87/04.02.01/2008-09 dated November 28, 2008 enclosed to this circular.
(P.Vijaya Bhaskar)
Chief General Manager
DBOD.Dir.(Exp).BC.No. 87/04.02.01/2008-09
November 28, 2008
Rupee Export Credit Interest Rates-Extension of period of credit
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 28, 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 28, 2008 to April 30, 2009 will not be 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/2008-09/299 · issued 28 Nov 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=4673&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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