On October 9, 2024, the Reserve Bank of India (RBI) issued a circular regarding the extension of the Interest Equalization Scheme (IES) for Pre and Post Shipment Rupee Export Credit. This extension, effective until December 31, 2024, follows a Trade Notice from the Government of India dated September 30, 2024. Key modifications include a cap on fiscal benefits for each Micro, Small, and Medium Enterprises (MSME) manufacturer exporter, set at ₹50 lakhs for the financial year 2024-25, applicable until the end of December 2024. Additionally, MSMEs that have already claimed benefits amounting to ₹50 lakhs or more before September 30, 2024, will not be eligible for further benefits during the extended period. The RBI clarified that all other terms and conditions from previous instructions remain unchanged, ensuring continuity in the implementation of the scheme for eligible scheduled commercial banks and cooperative banks.
Reserve Bank of India
RBI/2024-25/80
DOR.STR.REC.45/04.02.001/2024-25
October 9, 2024
All Scheduled Commercial Banks (excluding RRBs),
Primary (Urban) Cooperative Banks & State Cooperative Banks (scheduled banks
having AD category-I license), and
Exim Bank
Dear Sir / Madam,
Interest Equalization Scheme (IES) on Pre and Post Shipment Rupee Export Credit
Please refer to the instructions issued vide circular No. DOR.STR.REC.44/04.02.001/2024-25 dated September 20, 2024.
2. Government of India, vide Trade Notice No.18/2024-2025 dated September 30, 2024, has allowed for an extension of the Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit (‘Scheme’) for three months up to December 31, 2024, with the following modifications to the Scheme:
a. Fiscal benefits of each MSME, on aggregate, will be restricted to ₹50 lakhs for the Financial Year 2024-25 till December 31, 2024.
b. Accordingly, MSME manufacturer exporters who have already availed equalisation benefits of ₹50 lakhs or more in the Financial Year 2024-25 till September 30, 2024, will not be eligible for any further benefit in the extended period.
4. Other terms and conditions/provisions of the extant instructions issued by the Bank on the captioned Scheme shall remain unchanged.
Yours faithfully
(Vaibhav Chaturvedi)
Chief General Manager
