The Reserve Bank of India (RBI) issued a notification on August 29, 2024, extending the Interest Equalization Scheme (IES) on Pre and Post Shipment Rupee Export Credit until August 31, 2024, effective from July 1, 2024. This extension, approved by the Government of India, includes key modifications: from July 1, 2024, only Micro, Small, and Medium Enterprise (MSME) Manufacturer exporters are eligible for the scheme, excluding non-MSME exporters. Additionally, the interest subvention is capped at ₹1.66 Crore per Importer-Exporter Code (IEC) for the extended period. Other provisions of the scheme remain unchanged.
Reserve Bank of India
RBI/2024-25/71
DOR.STR.REC.41/04.02.001/2024-25 Dated: August 29, 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.78/04.02.001/2023-24 dated February 22, 2024.
2. Government of India, vide Trade Notice No.07/2024-2025 dated June 28, 2024 read with Trade Notice No.08/2024-2025 dated July 10, 2024 has allowed for an extension of the Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit (‘Scheme’) up to August 31, 2024. The extension takes effect from July 1, 2024 and ends on August 31, 2024.
3. Further, Government has advised the following modifications to the scheme:
a. Eligibility of borrowers: With effect from July 1, 2024, only MSME Manufacturer exporters would be eligible under the Scheme. Hence, the Scheme benefits will not be available to non-MSME exporters, and such claims are not to be entertained beyond June 30, 2024.
b. Cap on subvention amount: The interest equalization will be capped at ₹1.66 Crore per Importer-Exporter Code (IEC) for the aforesaid extended period of the scheme.
4. Other provisions of the extant instructions issued by the Bank on the captioned Scheme shall remain unchanged.
Yours faithfully
(Vaibhav Chaturvedi)
Chief General Manager
