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.
What you must do
- 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)
Is the Interest Equalisation Scheme still available for non-MSME exporters?
No, from July 1, 2024, only MSME manufacturer exporters are eligible. Non-MSME exporters cannot claim benefits for any period after June 30, 2024.
What is the new subvention cap per IEC for the extended period?
The interest equalisation subvention is capped at ₹1.66 crore per Importer-Exporter Code for the period July 1 to August 31, 2024.
Until when is the scheme valid now?
The scheme has been extended up to August 31, 2024, effective from July 1, 2024.