Interest Equalisation Scheme Extended to Aug 31, 2024 with Key Changes
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2024-25/71 · issued 29 Aug 2024 · ~2 min read
Quick answerRBI extends Interest Equalisation Scheme for rupee export credit to August 31, 2024, effective July 1, 2024. Only MSME manufacturer exporters are eligible; non-MSME claims stop after June 30, 2024. Subvention capped at ₹1.66 crore per IEC for this period.
What changed
The Government extended the Interest Equalisation Scheme for pre and post shipment rupee export credit from July 1, 2024 to August 31, 2024. Eligibility is now restricted to MSME manufacturer exporters only, excluding non-MSME exporters from benefits after June 30, 2024. A new cap of ₹1.66 crore per Importer-Exporter Code has been introduced for the extended period.
What it means for you
Banks must immediately stop processing interest equalisation claims for non-MSME exporters for periods after June 30, 2024. For MSME manufacturer exporters, the subvention amount per IEC is now capped at ₹1.66 crore for the July-August 2024 period. All other existing scheme instructions remain unchanged, so banks should continue to follow previous RBI circulars for operational details.
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
Update your systems to restrict interest equalisation claims to only MSME manufacturer exporters from July 1, 2024 onwards.
Reject any claims from non-MSME exporters for periods after June 30, 2024 and communicate the change to affected customers.
Apply the ₹1.66 crore subvention cap per Importer-Exporter Code for the extended period July 1 to August 31, 2024.
Ensure all claims are processed within the scheme's extended validity up to August 31, 2024.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Primary (Urban) Cooperative Banks, State Cooperative Banks with AD Category-I license, Exim Bank, MSME manufacturer exporters, Non-MSME exporters (no longer eligible)
RBI’s words: “Please refer to the instructions issued vide circular No.DOR.STR.REC.41/04.02.001/2024-25 dated August 29, 2024”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #103: DOR.STR.REC.41/04.02.001/2024-25 — "Interest Equalization Scheme (IES) on Pre and Post Shipment Rupee Export Credit" dated August 29, 2024”
📜 Read the original circular — full text as issued by RBI
RBI/2024-25/71
DOR.STR.REC.41/04.02.001/2024-25
August 29, 2024
All Scheduled Commercial Banks (excluding RRBs),
Primary (Urban) Cooperative Banks & State Cooperative Banks (scheduled banks having AD category-I license), and
Exim Bank
Dear Sir / Madam,
Interest Equalization Scheme (IES) on Pre and Post Shipment Rupee Export Credit
Please refer to the instructions issued vide circular No. DOR.STR.REC.78/04.02.001/2023-24 dated February 22, 2024 .
2. Government of India, vide Trade Notice No.07/2024-2025 dated June 28, 2024 read with Trade Notice No.08/2024-2025 dated July 10, 2024 has allowed for an extension of the Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit ('Scheme') up to August 31, 2024. The extension takes effect from July 1, 2024 and ends on August 31, 2024.
3. Further, Government has advised the following modifications to the scheme:
Eligibility of borrowers: With effect from July 1, 2024, only MSME Manufacturer exporters would be eligible under the Scheme. Hence, the Scheme benefits will not be available to non-MSME exporters, and such claims are not to be entertained beyond June 30, 2024.
Cap on subvention amount: The interest equalization will be capped at ₹1.66 Crore per Importer-Exporter Code (IEC) for the aforesaid extended period of the scheme.
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
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2024-25/71 · issued 29 Aug 2024. 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=12729&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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