Master Circular on Export Credit Refinance Facility
This circular outlines the guidelines for the Export Credit Refinance Facility provided by the Reserve Bank of India.
Eligible Institutions: The facility is available to all scheduled commercial banks, excluding Regional Rural Banks (RRBs) and Local Area Banks (LABs).
Limit: The limit for refinance is 50% of the outstanding export credit at the end of the fortnight preceding the date of application.
Interest Rate: The interest rate is 1% above the Bank Rate, currently 9.5% per annum.
Margin Requirement: A margin of 10% of the amount of refinance is required.
Duration: The duration of the refinance facility is 180 days from the date of disbursement.
Collateral: The collateral required is in the form of government securities or other approved securities.
Minimum Amount of Availment: The minimum amount of availment is ₹25 crore.
Place of Availment: The facility can be availed from the Reserve Bank of India’s Regional Offices.
Penalties: Penalties will be levied for delayed repayment or non-compliance with the terms and conditions.
Documentation: The required documents include a demand promissory note, a letter of undertaking, and a board resolution.
Reporting Requirement: Banks are required to submit a quarterly statement of availed refinance to the Reserve Bank of India.
Conditions: The facility is subject to certain conditions, including the maintenance of a minimum export credit outstanding.
Annex and Appendix: The circular includes annexures and appendices that provide additional information and forms.
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Download: Master Circular on Export Credit Refinance Facility