What changed
RBI updated its 2010 Master Circular on Rupee/Foreign Currency Export Credit and Customer Service to Exporters, incorporating all circulars and clarifications issued up to June 30, 2011. The new circular consolidates previous instructions into one document for easier reference.
What it means for you
Banks must now refer to this single Master Circular for all export credit guidelines, ensuring uniformity in pre-shipment and post-shipment lending in both rupee and foreign currency. The circular also includes updated customer service and reporting requirements, which may affect loan processing and compliance workflows.
What you must do
- Replace the 2010 Master Circular with this updated version for all export credit operations.
- Review Part A (Rupee Export Credit) and Part B (Foreign Currency Export Credit) for any changes in interest rate directives.
- Ensure customer service and reporting procedures align with Part C of the circular.
- Train staff on the consolidated guidelines, especially for diamond exporters regarding conflict diamonds.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Exporters availing pre-shipment or post-shipment credit, Bank staff handling export credit and customer service
Does this Master Circular replace all previous export credit circulars?
Yes, it consolidates and updates all instructions from circulars listed in the appendices, effective from July 1, 2011.
Are Regional Rural Banks covered under this circular?
No, the circular explicitly excludes Regional Rural Banks from its scope.
What is the legal basis for this Master Circular?
It is a statutory directive issued under Sections 21 and 35A of the Banking Regulation Act, 1949.