Interest Equalization Scheme Extended Till June 30, 2021
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2021-22/21 · issued 12 Apr 2021 · ~1 min read
Quick answerRBI extends the Interest Equalization Scheme on pre and post shipment rupee export credit by three months, from April 1 to June 30, 2021, with same scope and coverage. Banks must continue existing operational instructions.
What changed
The Government of India approved a three-month extension of the Interest Equalization Scheme for pre and post shipment rupee export credit, effective April 1, 2021, through June 30, 2021. The scope and coverage remain unchanged from the previous instructions issued on May 13, 2020.
What it means for you
Banks must continue providing subsidized interest rates on eligible export credit under the scheme for another quarter. This ensures exporters maintain access to cheaper credit, supporting trade recovery. Lenders need to keep their operational processes unchanged until the new deadline.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Continue applying the Interest Equalization Scheme on pre and post shipment rupee export credit as per existing instructions.
Ensure all eligible export credit disbursed from April 1, 2021, to June 30, 2021, qualifies for the scheme.
Update internal systems and reporting to reflect the extended validity period.
Communicate the extension to relevant branches and export credit teams.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Small Finance Banks, Primary (Urban) Cooperative Banks, EXIM Bank, Exporters availing rupee export credit
RBI’s words: “Please refer to the instructions issued vide circular DOR.CRE.REC.06/04.02.001/2021-22 dated April 12, 2021”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #315: DOR.CRE.REC.06/04.02.001/2021-22 — "Interest Equalization Scheme on Pre and Post Shipment Rupee Export Credit - Extension" dated April 12, 2021”
📜 Read the original circular — full text as issued by RBI
RBI/2021-22/21
DOR.CRE.REC.06/04.02.001/2021-22
April 12, 2021
All Scheduled Commercial Banks (excluding RRBs)
Small Finance Banks, Primary (Urban) Cooperative Banks
and EXIM Bank
Dear Sir / Madam,
Interest Equalization Scheme on Pre and Post Shipment Rupee Export Credit-Extension
Please refer to the instructions issued vide DBR.Dir.BC.No.69/04.02.001/2019-20 dated May 13, 2020 .
2. In this connection, Government of India has approved the extension of Interest Equalization Scheme for pre and post shipment Rupee export credit, with same scope and coverage, for three more months i.e., upto June 30, 2021. The extension takes effect from April 01, 2021 and ends on June 30, 2021 covering a period of three months.
3. Consequently, the extant operational instructions issued by the Reserve Bank under the captioned Scheme shall continue to remain in force upto June 30, 2021.
Yours faithfully
(Manoranjan Mishra)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2021-22/21 · issued 12 Apr 2021. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12075&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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