Reserve of Bank India Gives Big Gift To Exporters; Check Details

The Reserve Bank of India (RBI) handed a large present to exporters on Tuesday. The Reserve Bank on Tuesday extended the interest equalisation scheme for pre and post shipment rupee credit for MSME exporters till March 2024 with the objective of boosting outbound shipments.

Earlier, the government approved the extension of the Interest Equalization Scheme for pre and post-shipment rupee export credit up to March 31, 2024. The extension takes effect from October 1, 2021, and ends on March 31, 2024, the RBI said in a notification.

With the goal of increasing outward shipments, the central bank extended the Interest Equalization Scheme for pre and post shipment rupee loan for MSME exporters through March 2024. Explain that exporters receive a subsidy as a result of this. This scheme was extended twice last year, once until the end of June and again until September 2021.

The government has decided to extend the interest equalization plan on pre and post export loans in rupee denomination until March 31, 2024, or until further review, whichever comes first, according to a Reserve Bank notification dated March 8, 2022. This extension will last until March 31, 2024. It will begin on October 1, 2021 and terminate on March 31, 2024.

‘Telecom Instruments’ sector having six HS lines¹ shall be out of the purview of the Scheme, except for MSME manufacturer exporters.

Revised interest equalisation rates under the Scheme will now be 3 per cent for MSME manufacturer exporters exporting under any HS lines, and 2 per cent for manufacturer exporters and merchant exporters exporting under 410 HS lines (after excluding 6 HS lines pertaining to Telecom Sector as mentioned above)

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.

It’s worth mentioning that the scheme’s primary goal is to promote exports. The interest equalization plan provides subsidies to exporters.