Interest Subvention on Rupee Export Credit Extended for UCBs

RBI/2011-12/246 UBD.BPD (AD) Cir.No.3/13.05.000/2011-12 November 3, 2011 The Chief Executive Officer Scheduled Primary (Urban) Co-operative Banks (holding AD Category I licence) Madam / Dear Sir Interest Rates on Rupee Export Credit - UCBs Please refer to  circular UBD.BPD.(PCB) Cir. No. 5/13.05.000/2010-11 dated January 11, 2011 extending the interest subvention on rupee export credit on specified export sectors till March 31, 2011. 2. Government of India has decided to extend interest subvention of 2% on rupee export credit on specified export sectors from April 1, 2011 to March 31, 2012. Accordingly, the interest subvention on pre-shipment and post-shipment rupee export credit is extended from April 1, 2011 to March 31, 2012 on the same terms and conditions as mentioned in our circular dated January 11, 2011 for the following sectors. (i) Handicrafts (ii) Handlooms (iii) Carpet (iv) Small and Medium Enterprises (SMEs) (as defined in Annex I ) 3. A Directive UBD.BPD.Dir. (Exp). No.1/13.05.000/2011-12 dated November 3, 2011 , issued in this regard, is enclosed. 4. Claims for re-imbursement of subvention amount may be submitted to the Chief General Manager-in-Charge, Urban Banks Department, Reserve Bank of India, Central Office, Garment House, Worli, Mumbai 400 018 on a quarterly basis starting from quarter ended June 30, 2011 in the format as per Annex II . The amount of subvention will be calculated on the outstanding amount of rupee export credit from the date of disbursement up to the date of repayment or up to the date on which the outstanding export credit becomes overdue, whichever is earlier. The claims should be accompanied by an External Auditor's Certificate certifying that the claim for subvention of Rs. ………….. for the period ……………. (specify the quarter) is true and correct. Settlement of the claim will be done only on receipt of this certificate. Yours faithfully (A. Udgata) Chief General Manager- in- Charge Annex -I Definition of SME Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below: (i) A micro enterprise is an enterprise where investment in plant and machinery (original cost excluding land and building and the items specified by the Ministry of Small Scale Industries vide its notification No. S.O.1722 (E) dated October 5, 2006) does not exceed Rs. 25 lakh; (ii) A small enterprise is an enterprise where the investment in plant and machinery (original cost excluding land and building and the items specified by the Ministry of Small Scale Industries vide its notification No. S.O.1722 (E) dated October 5, 2006) is more than Rs. 25 lakh but does not exceed Rs. 5 crore; and (iii) A medium enterprise is an enterprise where the investment in plant and machinery (original cost excluding land and building and the items specified by the Ministry of Small Scale Industries vide its notification No. S.O.1722 (E) dated October 5, 2006) is more than Rs. 5 crore but does not exceed Rs. 10 crore. Annex II Rupee Export Credit for the period from ________ to _________ (to be submitted quarterly starting from quarter ended June 30, 2011) (Pre-shipment Rupee Export Credit and Post –shipment Rupee Export Credit) (Amount in Rs.)                         Category of Exporters

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2011-12/246 · issued 03 Nov 2011. The plain-English explanation above is BankPulse’s own independent summary.

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