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RBI eases interest on overdue export bills up to 180 days

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2008-09/314 · issued 08 Dec 2008 · ~1 min read
Quick answerBanks may now charge post-shipment rupee export credit rates (not exceeding BPLR minus 2.5 percentage points) on overdue export bills for up to 180 days, instead of the higher ECNOS rate, to support exporters facing weak external demand.

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.

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

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

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

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.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #2012: DBOD.Dir.(Exp).BC.No.95/04.02.01/2008-09 — "Rupee Export Credit Interest Rates - Interest on Overdue Export Bills" dated December 8, 2008”
📜 Read the original circular — full text as issued by RBI
RBI/2008-09/314 DBOD.Dir.(Exp).BC.No.95/04.02.01/2008-09 December 8, 2008 All Scheduled Commercial Banks (excluding RRBs) Dear Sir, Rupee Export Credit Interest Rates – Interest on overdue export bills Please refer to para 4.2.5 of our Master Circular DBOD. No. Dir.(Exp.)BC.No.09/ 04.02.02/2008-09 dated July 1, 2008 on the captioned subject.  In respect of overdue bills, banks have been permitted to charge the rates fixed for Export Credit Not Otherwise Specified (ECNOS) for the period beyond the due date. In view of the difficulties faced by exporters on account of the weakening of external demand, it has now been decided that the prescribed interest rate as applicable to post-shipment rupee export credit (not exceeding BPLR minus 2.5 percentage points) may also be extended to overdue bills up to 180 days from the date of advance till further notice. Yours faithfully, (P.Vijaya Bhaskar) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/314 · issued 08 Dec 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=4688&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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