The Reserve Bank of India (RBI) on March 8, 2022 has issued Notification regarding Interest Equalization Scheme on Pre and Post Shipment Rupee Export Credit – Extension. The extension shall come into effect from October 1, 2021.
The following has been stated namely: -
• Government of India has approved the extension of Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit (‘Scheme’) up to March 31, 2024.
• Modifications made by the Government are namely: -
1. Telecom Instruments’ sector having six HS lines shall be out of the purview of the Scheme, except for MSME manufacturer exporters.
2. Revised interest equalisation rates under the Scheme will now be 3% for MSME manufacturer exporters exporting under any HS lines, and 2% for manufacturer exporters and merchant exporters exporting under 410 HS lines.
3. Banks, while issuing approval to the exporter, will furnish; the prevailing interest rate, the interest subvention being provided and the net rate being charged to each exporter so as to ensure transparency and greater accountability in the operation of the Scheme.
4. For the period from October 1, 2021 to March 31, 2022, banks shall identify the eligible exporters as per the Scheme, credit their accounts with the eligible amount of interest equalisation and submit sector-wise consolidated reimbursement claim for the said period to the Reserve Bank by April 30, 2022.
5. With effect from April 1, 2022, banks shall reduce the interest rate charged to the eligible exporters upfront as per the guidelines and submit the claims in original within 15 days from the end of the respective month, with bank’s seal, and signed by authorised person.
[Notification No. RBI/2021-22/180]
