RBI Extended Interest Equalization Scheme for exporters
Reserve Bank of India (RBI) vide Circular No. RBI/2022-23/60 DOR.STR. REC.39/04.02. 001/2022-23 dated 31st May, 2022 has issued notification related to “Interest Equalization Scheme (IES) on Pre and Post Shipment Rupee Export Credit - Extension.
- This extension has been provided with an objective of boosting outbound shipments.
- Exporters get subsidy under the 'Interest Equalisation Scheme for pre and post-shipment Rupee Export Credit'.
- Government of India has approved the extension of Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit (‘Scheme’) up to March 31, 2024 or till further review, whichever is earlier. The extension takes effect from October 1, 2021 and ends on March 31, 2024.
- The scheme will not apply to telecom instruments and entities availing benefits under the Production Linked Incentive (PLI) scheme of the government.
- The interest equalisation rates under the scheme have been revised to 2 % and 3 % for specified categories of MSME manufacturer exporters.
- Government has issued a clarification that the extended IES will also be available to such beneficiaries for segments other than for which they have availed of PLI benefits.
- It is further advised that banks shall obtain a Self-Declaration as mentioned below under the IES from the exporters as per the format given below.
- These provisions shall be deemed effective from October 1, 2021. Other provisions of the aforesaid circular - RBI/2021-22/180DOR.STR.REC.93/04.02.001/2021-22 dated March 8, 2022 (Click Here) shall remain unchanged.
- For the period from October 1, 2021 to March 31, 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 said period to the Reserve Bank by April 30, 2022.
- With effect from April 1, 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, with bank’s seal, and signed by authorised person, in the prescribed format.
- Declaration under Interest Equalization Scheme (IES)
Declaration under Interest Equalization Scheme (IES)
1. I/We hereby declare that I/We am/are not availing benefits under the Production Linked Incentive (PLI) scheme of Government of India in the segment/sector for which this application for pre/post shipment credit under the Interest Equalization Scheme (IES) has been made.
2. I/We fully understand that if any information furnished in the application is found incorrect or false, it will render me/us liable for any penal action or other consequences as may be prescribed in law or otherwise warranted.
3. I/We hereby declare that the particulars and the statements made in this application are true and correct to the best of my/our knowledge and belief and nothing has been concealed or withheld therefrom.
Signature of Exporter
Source: Click Here
By: CSLalit Rajput -
June 21, 2022