RBI reviewing the developments in global finance markets and the fact that domestic importers are experiencing difficulties in raising Trade Credit (Buyers Credit / Suppliers Credit) within the existing all-in-cost ceiling, RBI has made below changes in the existing policy.
- Revision in Interest Rate for tenure Upto 3 years : From 6 Month LIBOR + 200 bps to 6 Month LIBOR + 350 bps
- Effect From: Immediately
- Applicable Upto: 31/03/2012 (Subject to review there after)
Buyer's Credit & Supplier's Credit 
what’s meant by All-in-cost ceiling
For few products RBI has given a maximum cost structure which banks can charge from the customer. Like in Buyers Credit it is currently prescribed at 6 Month LIBOR + 350bps. But there was earlier a work around as it talked about only interest and thus banks would charge more from customer other cost like commitment fee, forex advisory, etc which did not fall under that ceiling. Thus to curtail all this issue, RBI during the course of time, made it very specific, saying that if it say 6 Month Libor + 350bps that means it includes cost charged to customer under every head or form related to buyers credit transaction and nothing more than this can be charged by banks.