Rate of interest subvention on export credit raised
The Reserve Bank of India (RBI) has decided to increase the rate of interest subvention on pre and post shipment rupee export credit for certain employment oriented export sectors to 3 per cent from August 1 compared to 2 per cent earlier, which is aimed to attract dollars and boost exports.
In a notification issued on Monday, RBI has asked banks to reduce the interest rate chargeable to the exporters as per base rate system in the existing sectors eligible for export credit subvention by the amount of subvention available subject to a floor rate of 7 per cent.
“Banks may ensure to pass on the benefit of 3 per cent interest subvention completely to the eligible exporters,” said RBI.
Meanwhile, the rupee closed at 64.31 per dollar this day against its previous close of 63.20 on Friday last.