What changed
Previously, overdue export bills attracted interest at the Export Credit Not Otherwise Specified (ECNOS) rate. Now, for overdue bills up to 180 days from the date of advance, banks may apply the same concessional post-shipment rupee export credit rate (not exceeding BPLR minus 2.5 percentage points) until further notice.
What it means for you
This gives exporters a temporary interest relief on delayed payments, reducing their cost of credit during a demand slump. For banks, it means lower interest income on these overdue exposures but helps maintain customer relationships and avoid defaults. The relaxation is valid only until further notice, so banks must track the expiry.
What you must do
- Update your loan systems to apply post-shipment rupee export credit rate (not exceeding BPLR minus 2.5 percentage points) on overdue export bills up to 180 days.
- Communicate the revised interest treatment to your export credit customers and relationship managers.
- Monitor the 180-day limit and revert to ECNOS rate for overdue periods beyond that.
- Flag this as a temporary measure and watch for RBI's further notice on continuation or withdrawal.
Who it affects
All scheduled commercial banks (excluding RRBs) handling rupee export credit, Exporters availing post-shipment rupee export credit, Bank treasury and credit risk teams managing export loan portfolios
What rate should we charge on overdue export bills now?
For overdue bills up to 180 days from the date of advance, you may charge the same rate as post-shipment rupee export credit, which is not exceeding BPLR minus 2.5 percentage points. Beyond 180 days, the earlier ECNOS rate applies.