**Summary:**
This circular, RBI20181981 DBR.Dir.BC.No.09 / 04.02.001/2018-19 dated November 29, 2018, issued by the Reserve Bank of India (RBI) to all Scheduled Commercial Banks (excluding RRBs), Small Finance Banks, and Primary Urban Cooperative Banks, announces a revision to the Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit. Effective November 2, 2018, the Government of India has increased the interest equalisation rate from 3% to 5% for exports by Micro, Small, and Medium Enterprises (MSMEs) manufacturers. This scheme applies to all exports under 416 tariff lines at the ITC HS code of 4 digits and exports made by MSMEs across all ITC HS codes, as detailed in para 2(c) of the annex to RBI circulars DBR.Dir.BC.No. 62/04.02.001/2015-16 dated December 4, 2015, and DCBR.CO.SCB.Cir.No. 11/3.05.000/2015-16 dated February 11, 2016. Banks are advised to extend the benefit of the scheme to all eligible MSME exporters. For further information, contact Prasant K. Seth, General Manager, Department of Banking Regulation, Central Office, RBI at Tel No: 912222601000, Fax No: 912222701241, or Email ID: cgmicdbrrbi.org.in. The central office is located at 13th floor, NCOB, Shahid Bhagat Singh Marg, Mumbai 400001.
Key Entities Referenced
Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit: A government scheme aimed at providing interest equalization for exporters.
RBI: Reserve Bank of India, the central bank of India.
Scheduled Commercial Banks: Banks that are listed in the second schedule of the Reserve Bank of India Act, 1934.
RRBs: Regional Rural Banks, financial institutions in India that operate at a regional level.
Small Finance Banks: A type of bank in India that primarily undertakes basic banking activities of acceptance of deposits and lending to unserved and underserved sections including small business units, small and marginal farmers, micro and small industries and unorganised sector entities.
Primary Urban Cooperative Banks: Also known as Urban Cooperative Banks (UCBs), these are cooperative banks that operate in urban and semi-urban areas.
Government of India: The Union Government established by the Constitution of India.
MSME: Micro, Small and Medium Enterprises. A sector of the Indian economy.
RBI/2018-19/81
DBR.Dir.BC.No.09 /04.02.001/2018-19 November 29, 2018
All Scheduled Commercial Banks (excluding RRBs)
Small Finance Banks and
Primary (Urban) Cooperative Banks
Dear Sir / Madam,
Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit
Please refer to the operational instructions for the captioned scheme contained in RBI
circular on Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit
issued vide DBR.Dir.BC.No. 62/04.02.001/2015-16 dated December 4, 2015 and
DCBR.CO.SCB.Cir.No. 1/13.05.000/2015-16 dated February 11, 2016.
2. In this regard, it has been decided by the Government of India to increase w.e.f. November
02, 2018 Interest Equalisation rate from 3% to 5% in respect of exports by the Micro, Small &
Medium Enterprises (MSME) sector manufacturers under the Interest Equalisation Scheme
on Pre and Post Shipment Rupee Export Credit.
3. In terms of para 2(c) of the Annex to the aforesaid RBI circulars, the Scheme is available
to all exports under 416 tariff lines [at ITC (HS) code of 4 digits] and exports made by
MSMEs across all ITC(HS) codes. It is therefore, advised that the benefit of the scheme be
provided to all eligible MSME Exporters.
Yours faithfully,
(Prasant K Seth)
General Manager
बै�कग िविनयमन िवभाग, क��ीय कायार्लय, 13 माला, शहीद भगत�सह मागर्, मुम्बई 400001
_____________________________________________________________________________________________________
Department of Banking Regulation, Central Office, 13th floor ,NCOB,Shahid Bhagat Singh Marg, Mumbai - 400001
/Tel No: 91-22-22601000 / Fax No: 91-22-22701241 Email ID:cgmicdbr@rbi.org.in
�हदी आसान ह,ै इसका �योग बढ़ाइए