Interest Rates On Export Credit Liberalised

The Reserve Bank of India (RBI) expects the flow of credit to the export sector to increase following its proposal to liberalise interest rates on export credit in rupee terms in two phases. But, most banks are already charging interest rates less than the ceiling rates stipulated by the central bank.

Further, a lot of fresh disbursals to exporters is taking place in foreign currency borrowings at Libor plus 0.75 per cent, said Development Credit Bank head treasury K Harihar.