Current · Source: Reserve Bank of India · RBI/2012-13/379 · issued FY 2012-13 · ~1 min read
Quick answerRBI offers scheduled banks (ex-RRBs) a special rupee refinance facility linked to the swap for incremental PCFC. The rate is the repo rate (8.0% then). Available Jan 21 to Jun 28, 2013. Existing ECR continues.
The rule, in the simplest words
Banks (except Regional Rural Banks) can borrow rupees equal to the amount they swapped for pre‑shipment export credit in foreign currency.
This special borrowing is only available from January 21, 2013 to June 28, 2013.
To use it, banks must provide promissory notes that are fully backed by eligible export bills under the PCFC scheme.
The regular Export Credit Refinance (ECR) facility remains unchanged and can still be used for other export credit needs.
How it plays out — a real example
Arjun, a gold‑loan officer in Indore, sees an exporter needing pre‑shipment credit. He helps the exporter swap the foreign‑currency bill with RBI and then uses the special refinance to get rupee funds at 8% interest, making the export cheaper. Arjun smiles as the exporter thanks him for the lower cost.
What changed
RBI introduced a special export credit refinance facility for scheduled banks (excluding RRBs) that allows them to access rupee refinance equal to the amount swapped under the PCFC swap facility. The interest rate on this refinance is set at the prevailing repo rate under LAF, which was 8.0% at the time. The facility is available from January 21, 2013 to June 28, 2013.
What it means for you
Banks can now get rupee liquidity at the repo rate to support incremental pre-shipment export credit in foreign currency, making it cheaper to fund such exports. This encourages banks to expand export credit without straining their rupee resources. The existing Export Credit Refinance (ECR) facility remains unchanged, so banks have an additional tool.
What you must do
Ensure promissory notes for refinance are fully backed by eligible PCFC export bills.
Apply for the special refinance facility from January 21 to June 28, 2013.
Continue using the existing ECR facility as before for other export credit needs.
Who it affects
All scheduled banks (excluding Regional Rural Banks), Exporters availing Pre-shipment Export Credit in Foreign Currency
❓ Common questions
What is the interest rate on this special refinance?
The rate is the prevailing repo rate under the Liquidity Adjustment Facility, which was 8.0% at the time of the circular.
Does this replace the existing Export Credit Refinance facility?
No, the existing rupee Export Credit Refinance (ECR) facility continues as before. This is an additional facility.
Which banks are eligible for this facility?
All scheduled banks except Regional Rural Banks (RRBs) are eligible.
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/379
Ref. MPD. No. 359/07.01.279/2012-13
Pausha 24,1934 (Saka)
January 14, 2013
To
All Scheduled Banks [excluding Regional Rural Banks (RRBs)]
Dear Sir/Madam,
Special Export Credit Refinance Facility
1. Please refer to Circular No FMD.MOAG. No. 1082 /01.06.016/2012-13 setting out the swap facility to support incremental Pre-shipment Export Credit in Foreign Currency (PCFC). Scheduled banks (excluding RRBs) have the option to access rupee refinance to the extent of the swap with the Reserve Bank under a special export credit refinance facility for which promissory notes will need to be fully backed by eligible export bills under the PCFC.
2. The rupee rate of interest charged on refinance availed of under the special export refinance facility will be the prevailing repo rate under the Liquidity Adjustment Facility (LAF), currently at 8.0 per cent.
3. This facility is available from January 21, 2013 till June 28, 2013.
4. The present rupee Export Credit Refinance (ECR) facility will continue, as hitherto.
Yours sincerely,
(Michael Debabrata Patra)
Adviser-in- Charge
Related Press Release/Notification
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/379 · issued FY 2012-13. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (All scheduled banks (excluding Regional Rural Banks), Exporters availing Pre-shipment Export Credit in Foreign Currency), your first concrete step on “Special Export Credit Refinance Facility for PCFC” is: “Ensure promissory notes for refinance are fully backed by eligible PCFC export bills.” (RBI issued this FY 2012-13).
Circular: RBI/2012-13/379 -- Special Export Credit Refinance Facility for PCFC
Issued: FY 2012-13
Action required: Ensure promissory notes for refinance are fully backed by eligible PCFC export bills.
Action required: Apply for the special refinance facility from January 21 to June 28, 2013.
Action required: Continue using the existing ECR facility as before for other export credit needs.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
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
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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=7806&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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