What changed
The Government of India approved a three-month extension of the Interest Equalisation Scheme for pre and post-shipment rupee export credit, effective July 1, 2021 to September 30, 2021. The scope and coverage of the scheme remain unchanged from the previous circular dated April 12, 2021.
What it means for you
Banks must continue offering subsidised interest rates on eligible export credit under the same terms until end-September 2021. This extension provides continuity for exporters and ensures no disruption in the scheme's benefits. Lenders should align their systems to maintain the existing operational framework without changes.
What you must do
- Continue applying the Interest Equalisation Scheme on eligible pre and post-shipment rupee export credit as per existing instructions until September 30, 2021.
- Update internal systems and circulars to reflect the extended validity period.
- Communicate the extension to relevant branches and export credit processing teams.
- Monitor compliance with the scheme's scope and coverage as per the April 12, 2021 circular.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Small Finance Banks, Primary (Urban) Cooperative Banks, EXIM Bank, Exporters availing rupee export credit
What is the effective period of this extension?
The extension is effective from July 1, 2021 to September 30, 2021, covering three months.
Does the scope or coverage of the scheme change with this extension?
No, the scope and coverage remain exactly the same as per the earlier circular dated April 12, 2021.
Which banks are required to follow this circular?
All Scheduled Commercial Banks (excluding RRBs), Small Finance Banks, Primary (Urban) Cooperative Banks, and EXIM Bank.