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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

Interest Equalization Scheme (IES) on Pre and Post Shipment Rupee Export Credit

22-Feb-2024 | RBI/2023-2024/124 DOR.STR.REC.78/04.02.001/2023-24

RBI has issued circular on extension of the Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit (Scheme). By virtue of this notification Government of India has allowed for extension of the Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit (Scheme) up to June 30, 2024. The rate of interest equalization shall be 2% for Manufacturers and Merchant Exporters exporting under specified 410 HS lines and 3% to the MSME manufacturers exporting under any HS line. Following modifications have been made to the scheme- 1. Average interest rate: With effect from FY 2023-24, the banks which have priced the loans covered under this scheme at an average interest rate of greater than Repo Rate + 4% prior to subvention would be subjected to certain restrictions under the scheme. 2. Cap on subvention amount: The annual net subvention amount has been already capped at Rs 10 Cr per Importer-Exporter Code (IEC) in a given financial year and the same has been communicated to the trade & industry and banks vide DGFT Trade Notice No.05 dated May 25, 2023. Accordingly, all disbursement from April 1, 2023 shall be reckoned for this purpose

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