The Government has announced an extension of the Interest Equalization Scheme for pre and post-shipment rupee export credit until June 30, 2024, according to a notification by the Reserve Bank of India.
National
The Government has announced an extension of the Interest Equalization Scheme for pre and post-shipment rupee export credit until June 30, 2024, according to a notification by the Reserve Bank of India. Under this extension, Manufacturers and Merchant Exporters dealing with specified 410 HS lines will benefit from a 2% interest equalization rate, while MSME manufacturers exporting under any HS line will receive a higher rate of 3%. Additionally, starting from the financial year 2023-24, banks pricing loans covered under the scheme at an average interest rate higher than the Repo rate + 4% will face specific restrictions.
The scheme, inaugurated on April 1, 2015, was originally slated for a five-year duration until March 31, 2020.
The annual net subvention amount has been capped at Rs 10 crore per Importer-Exporter Code (IEC) in a given financial year. This cap applies to all disbursements made from April 1, 2023, onwards.
Governor- Shaktikanta Das, IAS (retd.)
Headquarters- Mumbai, Maharashtra
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