RBI permits banks to extend export credit using any alternative reference rate for smoother LIBOR transition
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- Last Updated on 15 December, 2025
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CIRCULAR NO. RBI/2021-2022/79 DOR.DIR.REC.37/04.02.002/2021-22, Dated 06.08.2021
In view of the impending discontinuance of LIBOR as a benchmark rate, the RBI has decided to permit banks to extend export credit using any other widely accepted Alternative Reference Rate in the currency concerned. As per the extant guidelines, authorized dealers are permitted to extend Pre-shipment Credit in Foreign Currency (PCFC) to exporters for financing the purchase, processing, manufacturing or packing of goods prior to shipment at LIBOR/EURO LIBOR/EURIBOR related rates of interest.
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