Reserve Bank of India
RBI/2021-22/180
DOR.STR.REC.93/04.02.001/2021-22
March 8, 2022
All Scheduled Commercial Banks (excluding RRBs),
Small Finance Banks,
Primary (Urban) Cooperative Banks (scheduled banks having AD category-I license), and
EXIM Bank
Dear Sir / Madam,
Interest Equalization Scheme on Pre and Post Shipment Rupee Export Credit – Extension
Please refer to the instructions issued vide circular DOR.CRE(DIR). REC.28/04.02.001/2021-22 dated July 1, 2021.
2. 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 or till further review, whichever is earlier. The extension takes effect from October 1, 2021 and ends on March 31, 2024. The modifications made by the Government to the Scheme are detailed below:
2.1 ‘Telecom Instruments’ sector having six HS lines1 shall be out of the purview of the Scheme, except for MSME manufacturer exporters.
2.2 Revised interest equalisation rates under the Scheme will now be 3 per cent for MSME manufacturer exporters exporting under any HS lines, and 2 per cent for manufacturer exporters and merchant exporters exporting under 410 HS lines (after excluding 6 HS lines pertaining to Telecom Sector as mentioned above).
2.3 Banks, while issuing approval to the exporter, will necessarily furnish i) the prevailing interest rate, ii) the interest subvention being provided, and iii) the net rate being charged to each exporter, so as to ensure transparency and greater accountability in the operation of the Scheme.
2.4 The extended Scheme will not be available to those beneficiaries who are availing the benefit under any Production Linked Incentive (PLI) scheme of the government.
3. 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.
4. 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, in the prescribed format, as modified (Annex I).
5. Other provisions of the extant instructions issued by the Bank on the captioned Scheme shall remain unchanged.
Yours faithfully
(Manoranjan Mishra)
Chief General Manager
Annex 1
| Government of India Interest Equalisation Scheme for Pre & Post Shipment Rupee Export Credit- Sector-wise claims of Scheduled Commercial Banks/ EXIM Bank/Primary (Urban) Cooperative Banks for the month of ….. Amount (in Rs.) Note: All amounts should be rounded off to the nearest rupee | |||||
| Sector | (A) Total amount of interest equalisation re-imbursement claimed |
Out of (A), amount of interest equalisation rei-mbursement claimed in respect of be-neficiaries belonging to Scheduled Castes (SC) |
Out of (A), amount of interest eq-ualisation reim-bursement claimed in respect of bene-ficiaries be-longing to Scheduled Tribes (ST) |
Out of (A), amount of interest eq-ualisation reim-bursement claimed in respect of exporters from North Eastern Region (NER) |
|
| 1 | Process agriculture/Food items | ||||
| 2 | Handicraft | ||||
| 3 | Carpet (Excl. Silk) Handmade | ||||
| 4 | Handloom Products |
||||
| 5 | Coir & Coir Manufactures | ||||
| 6 | Jute Raw, Yarn | ||||
| 7 | Other Jute Manufactures | ||||
| 8 | Readymade Garments and Made ups |
||||
| 9 | Fabric of all types | ||||
| 10 | Toys | ||||
| 11 | Sports Goods | ||||
| 12 | Paper, Stationary | ||||
| 13 | Cosmetics and Toiletries | ||||
| 14 | Leather Goods and footwear |
||||
| 15 | Ceramics and Allied Products |
||||
| 16 | Glass and Glassware | ||||
| 17 | Medical and Scientific Instruments |
||||
| 18 | Optical Frames, Lenses, Sunglasses Etc. | ||||
| 19 | Auto Components/Parts | ||||
| 20 | Bicycle & Parts | ||||
| 21 | Articles of Iron or Steel | ||||
| 22 | Misc. Articles of base metals | ||||
| 23 | Industrial Machinery, Electrical and Engineering items, 1C Engine, Machine tools, Parts | ||||
| 24 | Electrical Machinery and Equipment | ||||
| 25 | Telecom Instruments (only for MSME Manufacturer-Exporters) | ||||
| 26 | All items manufactured by MSMEs other than those covered above | ||||
| Grand Total | |||||
We certify having followed guidelines as stated in the RBI circular No.DOR.STR.REC.93/04.02.001/2021-22 dated March 8, 2022 while disbursing the above loans to eligible exporters. In particular, we also certify that while issuing approval to the exporter, we have furnished (i) the prevailing interest rate, (ii) the interest subvention being provided and (iii) the net rate being charged to each borrower.
(Name and stamp of authorised signatory of the bank)
Dated :
Thanks for providing the information on interest equalization scheme. There is an another circular from DGFT which asks exporters to get them registered online for availing this facility but RBI did not mention about this in their circular. So what is the difference between RBI and DGFT scheme please ?