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 Rs.10 Crore per Importer-Exporter Code (IEC) for a given financial year, accordingly a cap of Rs.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 Rs.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