What changed
This Master Circular updates the previous July 2012 version by incorporating all instructions issued up to June 30, 2013. It consolidates and supersedes earlier circulars listed in the appendices. The structure remains similar and includes annexes on interest subvention for engineering and textile goods as part of the consolidated instructions.
What it means for you
Banks now have a single reference document for export credit norms, reducing ambiguity. The inclusion of interest subvention schemes for specific engineering and textile tariffs signals targeted support for these sectors. Compliance with reporting and customer service requirements remains mandatory.
What you must do
- Replace all previous export credit circulars with this Master Circular as the single reference.
- Ensure your bank's export credit products (rupee and foreign currency) align with the updated interest rate and subvention guidelines.
- Review and update internal procedures for pre-shipment credit to diamond exporters, including conflict diamond undertakings.
- Train staff on the consolidated reporting requirements and customer service standards for exporters.
Who it affects
All scheduled commercial banks (excluding RRBs), Export credit departments, Trade finance teams, Compliance and reporting units
Does this Master Circular replace all earlier export credit circulars?
Yes, it consolidates and supersedes all instructions listed in the appendices, effective from July 1, 2013.
Are Regional Rural Banks covered under this circular?
No, the circular explicitly excludes RRBs from its scope.
What new annexes are included in this version?
Annex 4 and 5 list tariffs for engineering goods under interest subvention schemes dated January 14, 2013 and May 24, 2013, while Annex 6 covers textile goods tariffs from May 24, 2013.