What changed
The previous subvention, valid from December 1, 2008 to March 31, 2009, has been extended for an additional six months. The new period runs from April 1, 2009 to September 30, 2009, with no changes to eligible sectors or conditions.
What it means for you
Banks can continue offering concessional export credit rates with the 2% subvention, supporting exporters' cash flows during the global slowdown. This extension ensures stability for lenders in pricing export loans without altering existing operational guidelines.
What you must do
- Update internal systems to apply the 2% subvention on eligible rupee export credit from April 1 to September 30, 2009.
- Communicate the extension to your export credit teams and ensure compliance with the same terms and conditions as the earlier period.
- Monitor the subvention claims process to align with the new end date of September 30, 2009.
Who it affects
All scheduled commercial banks (excluding RRBs), Exporters in specified sectors receiving rupee export credit
Which sectors are covered under this subvention extension?
The circular states the subvention applies to the same sectors as the previous directive, but does not list them explicitly. Refer to the earlier December 16, 2008 circular for sector details.
Do we need to submit any new documentation for this extension?
No new documentation is required beyond the existing terms and conditions. The directive simply continues the previous arrangement for the additional six-month period.
Is this subvention applicable to all export credit or only rupee-denominated?
The subvention is specifically for rupee export credit, as stated in the circular title and text. Foreign currency export credit is not covered.