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Ceiling rate on overseas export credit extended till Sept: RBI

Press Trust of India  |  Mumbai 

With tight liquidity conditions and widening of credit spreads due to recent developments in international markets, the Reserve Bank today said it has extended the ceiling rate on export credit in foreign currency by banks for another six months.

"It has been decided that the prescriptions regarding ceiling rates on export credit in foreign currency and overseas line of credit will continue till September 30, 2012," the RBI said in a notification.

In November, RBI had increased the ceiling rate on export credit in foreign currency by banks to London Interbank Offered Rate (LIBOR) plus 350 basis points from plus 200 basis points till March 31, 2012.

"The banks will not levy any other charges such as service charge, management charge etc except for recovery towards out of pocket expenses incurred," it said.

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First Published: Mon, April 02 2012. 13:42 IST