Exporters get subsidy under ‘Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit’. In April last year, this scheme was first extended till the end of June and later till September 2021.
The Reserve Bank on Tuesday extended the interest equalization scheme for pre and post shipment rupee credit for MSME exporters till March 2024 with an aim to boost outbound shipments.
Exporters get subsidy under ‘Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit’. In April last year, this scheme was first extended till the end of June and later till September 2021.
The interest equalization rates under the scheme have been revised to 2 per cent and 3 per cent for specified categories of MSME manufacturer exporters. reserve Bank of India said.
“Government has approved the extension of Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit till March 31, 2024 or till further review, whichever is earlier. The extension is effective from October 1, 2021 and ends on March 31, 2024,” RBI said in a notification.
The scheme will not be applicable to telecom equipment and entities availing benefits under the Production Linked Incentive (PLI) scheme of the government.
While issuing the approval to the exporter, the bank will have to furnish the prevailing interest rate, interest subvention being provided and the net rate being charged from each exporter, so as to ensure transparency and greater accountability in the operation of the scheme. RBI said.
It further said that with effect from April 1, 2022, banks will reduce the rate of interest to be charged from eligible exporters as per the guidelines and submit the original claims within 15 days from the end of the respective month in the prescribed format.
RBI further said that for the period from October 1, 2021 to March 31, 2022, banks shall identify eligible exporters as per the scheme, credit the eligible amount of interest equalization in their accounts and submit sector wise consolidated reimbursement claim for the period . Reserve Bank till April 30, 2022
India’s merchandise exports stood at USD 33.81 billion in February 2022, up 22.36 per cent from USD 27.63 billion in the same month of 2021.