The Reserve Bank of India (RBI) has announced an extension of the Interest Equalization Scheme (IES) for Pre and Post Shipment Rupee Export Credit until September 30, 2024, as per the Government of India’s directives. This extension specifically targets MSME manufacturer exporters, capping the annual net subvention amount at ₹10 crore per Importer-Exporter Code (IEC), with a maximum of ₹5 crore for MSME manufacturers. For non-MSME manufacturer and merchant exporters, the cap is set at ₹2.5 crore per IEC until June 30, 2024. The RBI circular clarifies that all other provisions of the existing instructions on the scheme will remain unchanged. These measures aim to support exporters and streamline financing processes within the export credit framework.
Reserve Bank of India
RBI/2024-25/76
DOR.STR.REC.44/04.02.001/2024-25
September 20, 2024
All Scheduled Commercial Banks (excluding RRBs),
Primary (Urban) Cooperative Banks & State Cooperative Banks (scheduled banks
having AD category-I license), and
Exim Bank
Madam/ Sir,
Interest Equalization Scheme (IES) on Pre and Post Shipment Rupee Export Credit
Please refer to the instructions issued vide circular No.DOR.STR.REC.41/04.02.001/2024-25 dated August 29, 2024.
2. Government of India (Gol), vide Trade Notice No.16/2024-2025 dated August 31, 2024, read with Trade Notice No.17/2024-2025 dated September 17, 2024, has allowed for an extension of the Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit (‘Scheme’) from September 1, 2024, to September 30, 2024.
3. Further, the Government has advised the following modifications/clarifications to the Scheme:
a) The aforesaid extension is applicable only for MSME Manufacturer exporters.
b) The annual net subvention amount is capped at ₹10 Crore per Importer-Exporter Code (IEC) for a given financial year, accordingly a cap of ₹5 Crore per IEC for MSME Manufacturer exporters is imposed till September 30, 2024, for the financial year starting from April 1, 2024.
c) It is further advised that for Manufacturer Exporters and Merchant Exporters under the non-MSME category, the cap shall be ₹2.5 Crore per IEC till June 30, 2024, as per the Government’s Trade Notice No.17/2024-2025 dated September 17, 2024.
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
