Interest Subvention on Rupee Export Credit for UCBs

RBI/2012-13/389 UBD.BPD. (AD) Cir.No.2 /13.05.000/2012-13 January 22, 2013 Chief Executive Officer Scheduled Primary (Urban) Co-operative Banks (holding AD Category I licence) Dear Sir/Madam Interest Rates on Rupee Export Credit -UCBs Please refer to circular UBD.BPD.(AD) Cir. No.8 /13.05.000/2011-12 dated June 26, 2012 extending the interest subvention on rupee export credit on specified export sectors till March 31, 2013. 2. The Government of India has decided to widen the scheme to include certain items covering the Engineering Sectors. The Scheme will be made available to the Engineering Sector on pre and post shipment export credit on the same terms and conditions as available to other sectors. A list of 134 tariff lines of Engineering products approved for inclusion in Interest Subvention for the period January 1, 2013 to March 31, 2013 is enclosed to this circular ( Annex I ). 3. Further it has also been decided to extend the interest subvention of 2% on rupee export credit on specified export sectors from April 1, 2013 to March 31, 2014. Accordingly, the interest subvention on pre-shipment and post-shipment rupee export credit is extended from April 1, 2013 to March 31, 2014 on the same terms and conditions as mentioned in our circular dated June 26, 2012 for the following sectors. (i) Handicraft (ii) Carpets (iii) Handlooms (iv) Small and Medium Enterprises (SMEs) (as defined in Annex II ) (v) Readymade Garments (vi) Processed Agriculture Products (vii) Sport Goods (viii) Toys (ix) 134 Tariff lines on Engineering Products ( Annex I ) 4. A Directive No. UBD.BPD.Dir. (Exp). No.9/13.05.000/2012-13 dated January 21, 2013 , issued in this regard, is enclosed. 5. 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, 2013 in the format as per Annex III . 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 Encl: as above Annex I Tariff Lines of Engineering Products approved for Inclusion for Interest Subvention

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/389 · issued 22 Jan 2013. The plain-English explanation above is BankPulse’s own independent summary.

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