RBI notifies rate cut for export finance

The RBI on Saturday directed all commercial banks to reduce interest rates on export finance by two percentage points following Government’s decision to grant subsidy to exporters hit hard by rise in rupee value. The RBI notified that two percentage points interest subsidy should be given to nine sectors—textiles, leather products, readymade garments, handicrafts, engineering products, sports goods, processed agriculture products, marine items and toys. The benefit would extend to small and medium exporters whose investment in plant and machinery does not exceed Rs 10 crore.