IANS | 23 Feb, 2024
The Reserve Bank of India (RBI) on Thursday issued a notification to
all the banks, stating that the government has allowed the extension of
the Interest Equalisation Scheme for Pre and Post Shipment Rupee Export
Credit (Scheme) up to June 30, 2024.
The rate of interest
equalisation shall be 2 pert cent for manufacturers and merchant
exporters exporting under specified 410 HS lines and 3 per cent for MSME
manufacturers exporting under any HS line.
The notification also
stated that with effect from FY 2023-24, the banks which have priced the
loans covered under this scheme at an average interest rate of greater
than repo rate + 4 per cent prior to subvention would be subjected to
certain restrictions under the scheme.
Based on an assessment
undertaken for FY 2023-24, the Director General of Foreign Trade (DGFT)
will identify the banks which are in breach of the above provision.
Such
banks shall be restricted from participating in the scheme till they
furnish an undertaking in the specified format to the DGFT. Any further
breach as assessed by the DGFT thereafter may lead to debarment from the
scheme.
The notification further said that the annual net
subvention amount has been already capped at Rs 10 crore per
Importer-Exporter Code (IEC) in a given financial year, and the same has
been communicated to the trade & industry and banks vide DGFT Trade
Notice No. 05 dated May 25, 2023.
Accordingly, all disbursement from April 1, 2023 shall be reckoned for this purpose.
