27 December 2008
it is my request to all the members that please elaborate how the interest rate is decided by the banks.
i came to know that if a exporter avail PCFC in foreign currency then the rate of interest is 5% to 6% and if it is availed in indian rupees then its rate of interest is 13% approximately. why it is so.
interest rate is on PCFC in public sector banks is 8%, because firstly u purchase the dollar with some rate, hence the time period for PCFC would be 6 months, so there would be flucation, hence some time it gains buyer & some time its gains to banker, hence PCFC rate of interest is lesser.
CAclubindia
