Rupee Export Credit Interest Rates Extended Till Oct 2009
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2008-09/466 · issued 29 Apr 2009 · ~2 min read
Quick answerRBI extended the validity of existing rupee export credit interest rate ceilings (BPLR minus 2.5%) from May 1 to October 31, 2009. Banks must apply these caps on pre- and post-shipment credit for the specified tenors. Beyond those tenors, rates are deregulated.
What changed
The validity of the interest rate ceilings on rupee export credit, previously set via circulars from October and November 2008, has been extended to October 31, 2009. The new directive takes effect from May 1, 2009, replacing the earlier expiry date. The applicable rates are detailed in the annex to the accompanying directive.
What it means for you
Banks must continue to cap rupee export credit rates at BPLR minus 2.5% for the specified categories and tenors until end-October 2009. This provides stability for exporters but limits banks' pricing flexibility on these loans. For tenors beyond the prescribed limits, banks retain full freedom to set rates based on BPLR and spread guidelines.
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% ceiling on all eligible pre-shipment and post-shipment export credit from May 1 to October 31, 2009.
Ensure that for tenors beyond the specified limits (e.g., pre-shipment beyond 270 days), you follow deregulated pricing guidelines.
Communicate the extended validity to your export credit teams and treasury to avoid any compliance gaps.
Review your BPLR and spread policies to ensure consistency with the directive's note on ceiling rates.
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
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?
The ceiling remains BPLR minus 2.5% per annum for the specified categories (e.g., pre-shipment up to 270 days, post-shipment usance bills up to 180 days). This applies from May 1 to October 31, 2009.
Are banks allowed to charge lower than the ceiling rate?
Yes, the directive explicitly states that since these are ceiling rates, banks are free to charge any rate below the ceiling.
What happens for export credit tenors beyond the specified limits?
Interest rates for tenors beyond the prescribed limits (e.g., pre-shipment beyond 270 days) are deregulated. Banks can decide rates based on BPLR and spread guidelines.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
RBI’s words: “The validity of the interest rates on rupee export credit indicated in the above circular would now remain in force up to April 30, 2010.”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
📜 Read the original circular — full text as issued by RBI
RBI/2008-09/466
DBOD.Dir.(Exp).BC.No.131/04.02.001/2008-09
April 29, 2009
All Scheduled Commercial Banks
(excluding RRBs)
Dear Sir,
Rupee Export Credit Interest Rates
Please refer to our circulars DBOD.Dir.(Exp.)No.68/04.02.01/2008-09 , DBOD.Dir.(Exp.)No.80/04.02.01/2008-09 and DBOD.Dir. (Exp.) No.88/04.02.01/2008-0 9 dated October 24, November 15 and November 28, 2008 respectively on the captioned subject.
2. The validity of the interest rates on rupee export credit indicated in the above circulars would now remain in force up to October 31, 2009. In this connection, you may please refer to RBI circular No.MPD.BC.323/07.01.279/2008-09 dated April 28, 2009. The rates of interest applicable have been incorporated in the Annexure to the Directive DBOD.Dir.(Exp).BC.No.130/04.02.001/2008-09 dated April 29, 2009 enclosed to this circular.
Yours faithfully,
(Prashant Saran)
Chief General Manager-in-Charge
DBOD.Dir.(Exp).BC.No.130 /04.02.001/2008-09 April 29, 2009
Rupee Export Credit Interest Rates
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 May 1, 2009 the interest rates on rupee export credit would be as indicated in the Annex enclosed to this Directive.
(H.R.Khan)
Executive Director Annex
Interest Rates on Rupee Export Credit of Scheduled Commercial Banks
Interest Rates effective from May 1 to October 31, 2009 will be not exceeding BPLR minus 2.5 percentage points per annum for the following categories of Export Credit.
Categories of Export Credit
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/466 · issued 29 Apr 2009. 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=4963&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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