Home › Circulars › RBI/2009-10/193

Export Credit Refinance Limit Cut to 15%

Current · Source: Reserve Bank of India · RBI/2009-10/193 · issued 27 Oct 2009 · ~2 min read
Quick answerRBI reduced the export credit refinance (ECR) limit from 50% to 15% of eligible rupee export credit outstanding, effective immediately. This reverses the crisis-era enhancement and tightens liquidity support for banks' export lending.
The rule, in the simplest words
How it plays out — a real example

Rahul, a forex & trade-finance officer in Indore, needs to adjust his bank's export credit portfolio after the RBI reduces the ECR limit. He recalculates the new limit and updates the reporting systems, ensuring his bank's liquidity and profitability are not affected by the change.

What changed

The eligible limit for export credit refinance (ECR) was reduced from 50% to 15% of outstanding rupee export credit eligible for refinance as at the end of the second preceding fortnight. This change was announced in the Second Quarter Review of Monetary Policy 2009-10 and takes immediate effect. The reporting format in Annex III of the Master Circular was also updated accordingly.

What it means for you

Banks will now receive significantly lower refinance from RBI against their export credit portfolio, reducing their access to cheap liquidity. This could compress margins on export lending and may require banks to adjust their funding strategies or pricing for export credit. The move signals RBI's confidence in easing liquidity conditions and normalizing crisis-era support.

What you must do

Who it affects

All scheduled banks (excluding RRBs) that avail export credit refinance, Treasury departments managing liquidity and refinance operations, Credit teams handling export finance products

❓ Common questions

What is the new ECR limit and when does it apply?

The eligible limit is reduced to 15% of outstanding rupee export credit eligible for refinance as at the end of the second preceding fortnight, effective from October 27, 2009.

Which export credits are excluded from the refinance calculation?

Exclusions include export bills rediscounted with other banks/Exim Bank/FIs, credit refinanced from NABARD/Exim Bank, PCFC, export bills rediscounted abroad, overdue rupee export credit, and other ineligible export credit.

Does this affect all banks equally?

The circular applies to all scheduled banks except Regional Rural Banks (RRBs), so RRBs are not impacted by this change.

📜 Read the original circular — full text as issued by RBI
RBI/2009-10/193 Ref. MPD. No.1437/02.01.005/2009-10 October 27, 2009 Kartika 4, 1931 (S) To All Scheduled Banks [excluding Regional Rural Banks (RRBs)] Dear Sir/Madam, Export Credit Refinance Facility Please refer to our circular No.MPD.310/07.01.279/2008-09 dated November 15, 2008 whereby the eligible limit of export credit refinance (ECR) facility was enhanced from the level of 15 per cent of the outstanding rupee export credit eligible for refinance as at the end of the second preceding fortnight to 50 per cent. 2. As indicated in the Second Quarter Review of Monetary Policy 2009-10 announced today, it has been decided to reduce the eligible limit of ECR facility from the level of 50 per cent of the outstanding rupee export credit eligible for refinance as at the end of the second preceding fortnight to 15 per cent with immediate effect. 3. Part A of the reporting format appearing in Annex III of the Master Circular No.MPD.4627/07.01.279/2009-10 dated July 1, 2009 is accordingly modified and enclosed. Yours faithfully (Janak Raj) Adviser-in-Charge Annex III Reporting Formats Form DAD 389 Name of the Bank ___________________________________________
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/193 · issued 27 Oct 2009. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Most relevant forTreasury Team / ALMCorporate / Wholesale Banking RMCompliance TeamRisk ManagementData Science / AnalyticsSenior Management / Board
🛠 Banker’s toolkit — checklists & reply templates →
Related circulars · Financial Markets Regulation
RBI Announces ₹1.25 Lakh Crore 2-Day VRR Auction on July 1Overnight VRR Auction Result: June 30, 2026RBI conducts ₹75,000 crore overnight VRR auction on June 30, 2026VRR Auction June 29, 2026: ₹75,021 Cr Allotted at 5.26%Overnight VRR Auction Result: July 29, 2026
Browse all departments →
Who does what — compliance checklist
💻 IT / Systems
  • Update internal reporting systems and the revised Part A format in Annex III of the Master Circular.
  • Communicate the change to your treasury and credit teams handling export finance.
📜 Compliance
  • Recalculate your ECR limit using the new 15% rate for the current and upcoming fortnights.
  • Review your export credit portfolio to identify any impact on liquidity and profitability.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All scheduled banks (excluding RRBs) that avail export credit refinance, Treasury departments managing liquidity and refinance operations, Credit teams handling export finance products), your first concrete step on “Export Credit Refinance Limit Cut to 15%” is: “Recalculate your ECR limit using the new 15% rate for the current and upcoming fortnights.” (RBI issued this 27 Oct 2009).

  1. Circular: RBI/2009-10/193 -- Export Credit Refinance Limit Cut to 15%
  2. Issued: 27 Oct 2009
  3. Action required: Recalculate your ECR limit using the new 15% rate for the current and upcoming fortnights.
  4. Action required: Update internal reporting systems and the revised Part A format in Annex III of the Master Circular.
  5. Action required: Review your export credit portfolio to identify any impact on liquidity and profitability.
  6. Action required: Communicate the change to your treasury and credit teams handling export finance.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

💬 Banker Discussion

Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.

Loading comments…
BankPulse Compliance Evidence Pack — generated 03 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=5330&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.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
—