**Summary:**
This circular, issued by the Reserve Bank of India (RBI) on October 9, 2024 (Reference No. RBI/2024-25/80 DOR.STR.REC.4504.02.001/2024-25), addresses all Scheduled Commercial Banks (excluding RRBs), Primary Urban Cooperative Banks, State Cooperative Banks (scheduled banks having AD Category-I license), and Exim Bank, regarding the Interest Equalization Scheme (IES) on Pre and Post Shipment Rupee Export Credit.
The circular follows up on instructions issued on September 20, 2024 (circular No. DOR.STR.REC.4404.02.001/2024-25) and communicates the Government of India's extension of the Scheme for three months, up to December 31, 2024, as per Trade Notice No. 18/2024-2025 dated September 30, 2024.
A key modification to the Scheme is that the fiscal benefits for each MSME, in aggregate, will be restricted to ₹50 lakhs for the Financial Year 2024-25 until December 31, 2024. MSME manufacturer exporters who have already availed equalization benefits of ₹50 lakhs or more in the Financial Year 2024-25 until September 30, 2024, will not be eligible for any further benefit during the extended period.
All other terms, conditions, and provisions outlined in the existing instructions issued by the RBI on the IES remain unchanged.
For further information, contact Vaibhav Chaturvedi, Chief General Manager, Department of Regulation, Central Office, Reserve Bank of India, 12th/13th Floor, Central Office Bhavan, Shahid Bhagat Singh Marg, Mumbai – 400001. Telephone: 22661602, 22601000. Email: strcrgdor@rbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India, the primary regulator in this notification.
Interest Equalization Scheme: A Government of India scheme to provide interest equalization for pre and post shipment rupee export credit.
Scheduled Commercial Banks: Banks regulated by RBI, excluding RRBs.
Primary Urban Cooperative Banks: Cooperative banks operating in urban areas and regulated by RBI.
State Cooperative Banks: Cooperative banks operating at the state level.
Exim Bank: Export-Import Bank of India, a financial institution.
MSME: Micro, Small and Medium Enterprises. Beneficiaries of the Interest Equalization Scheme
Mumbai, Maharashtra: City in India, location of the Central Office of the Reserve Bank of India.
बेटी बचाओ
बेटी पढ़ाओ
भारतीय �रज़वर् बैंक
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2024-25/80
DOR.STR.REC.45/04.02.001/2024-25 October 9, 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.44/04.02.001/2024-25 dated September 20, 2024.
2. Government of India, vide Trade Notice No.18/2024-2025 dated September 30,
2024, has allowed for an extension of the Interest Equalization Scheme for Pre and
Post Shipment Rupee Export Credit ('Scheme') for three months up to December 31,
2024, with the following modifications to the Scheme:
a) Fiscal benefits of each MSME, on aggregate, will be restricted to ₹50 lakhs for
the Financial Year 2024-25 till December 31, 2024.
b) Accordingly, MSME manufacturer exporters who have already availed
equalisation benefits of ₹50 lakhs or more in the Financial Year 2024-25 till
September 30, 2024, will not be eligible for any further benefit in the extended
period.
3. Other terms and conditions/provisions of the extant instructions issued by the Bank
on the captioned Scheme shall remain unchanged.
Yours faithfully
(Vaibhav Chaturvedi)
Chief General Manager
िविनयमन िवभाग, क��ीय कायार्लय, 12वी/ं13व� मंिज़ल, क��ीय कायार्लय भवन, शहीद भगत �संह माग,र् मुंबई 400001
Department Regulation, Central Office, 12th/13th Floor, Central Office Bhavan, Shahid Bhagat Singh Marg, Mumbai - 400001
टेलीफोन /Tel No: 22661602, 22601000 ईमलै /Email: strcrgdor@rbi.org.in