On 23 April 2010, the Reserve Bank of India (RBI) through Circular MPD.BC. 330/07.01.279/2009-10 announced the removal of the interest rate ceiling on pre-/post-shipment Rupee Export Credit.
Under the new regime, lenders may set the interest rate at or above the key policy rate of the RBI. Under the prior regulation, lenders were require to supply pre-/post-shipment export credit at a discount to the IndianBenchmark Prime Lending Rate (BPLR).
The liberalization is effective from 1 July 2010.