What changed
This master circular updates the previous July 1, 2011 version by incorporating all instructions issued up to June 30, 2012. It consolidates the entire framework on export credit and customer service into one document for easier reference.
What it means for you
Banks now have a single, updated reference for all export credit norms, reducing ambiguity and ensuring compliance with the latest RBI directives. The circular reinforces the statutory nature of these guidelines under the Banking Regulation Act, 1949, so adherence is mandatory.
What you must do
- Review the updated master circular and replace all earlier circulars referenced in Appendices I-III with this consolidated version.
- Ensure your bank's export credit products (rupee and foreign currency) comply with the interest rate and procedural guidelines outlined.
- Train relevant staff on the customer service and simplification procedures detailed in Part C of the circular.
- Update internal reporting systems to align with the reporting requirements specified in the circular.
Who it affects
All Scheduled Commercial Banks (excluding Regional Rural Banks), Export credit departments, Trade finance teams, Compliance and risk management units
Does this master circular change any interest rate ceilings for export credit?
The circular consolidates existing instructions up to June 30, 2012, but does not introduce new interest rate ceilings. Banks should refer to the specific sections on interest for rupee and foreign currency export credit within the document.
Are Regional Rural Banks (RRBs) covered by this circular?
No, the circular explicitly excludes RRBs from its scope of application. It applies only to all other Scheduled Commercial Banks.
What is the legal basis for this master circular?
It is a statutory directive issued under Sections 21 and 35A of the Banking Regulation Act, 1949, making compliance mandatory for all covered banks.