The government has extended the Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit up to March 31, 2024 or till further review, whichever is earlier. The extension takes effect from 1st October, 2021 and ends on 31st March, 2024,” the RBI said in a notification. Earlier the scheme was first extended till June end and later till September 2021.
However, the scheme will not apply to telecom instruments and entities availing benefits under the Production Linked Incentive (PLI) scheme of the government. While issuing approval to the exporter, the bank will be required to furnish the prevailing interest rate, the interest subvention being provided, and the net rate being charged to each exporter, notification added.
Further, RBI has revised the interest equalization rates under the scheme to 2 per cent and 3 per cent for specified categories of MSME manufacturer exporters. From 1st April, 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 in the prescribed format.
While, for the period from 1st October, 2021 to 31st March, 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 period to the Reserve Bank by 30th April, 2022.
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