Interest Equalization Scheme Extended for MSME Exporters Till Sept 30
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2024-25/76 · issued 20 Sep 2024 · ~2 min read
Quick answerRBI extends the Interest Equalization Scheme for pre/post-shipment rupee export credit by one month to Sept 30, 2024, but only for MSME manufacturer exporters. Annual net subvention cap is ₹10 crore per IEC for a given financial year; for MSMEs, a ₹5 crore cap applies till Sept 30, 2024.
What changed
The Government of India extended the Interest Equalization Scheme from September 1 to September 30, 2024, but only for MSME manufacturer exporters. The annual net subvention amount is capped at ₹10 crore per Importer-Exporter Code for a given financial year, with a ₹5 crore cap for MSME manufacturers till September 30, 2024, for the financial year starting from April 1, 2024. For non-MSME manufacturer and merchant exporters, the cap is ₹2.5 crore per IEC till June 30, 2024.
What it means for you
Banks must now apply the scheme only to MSME manufacturer exporters for the extended period, with stricter subvention caps per IEC. The ₹5 crore cap for MSMEs and ₹2.5 crore cap for non-MSMEs require careful monitoring to avoid exceeding limits. Other scheme terms remain unchanged, so existing processes continue but with updated eligibility and caps.
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 internal systems to restrict IES benefits to MSME manufacturer exporters only for the period Sept 1-30, 2024.
Implement checks to ensure subvention per IEC does not exceed ₹5 crore for MSMEs and ₹2.5 crore for non-MSMEs (till June 30, 2024).
Communicate the revised caps and eligibility to all export credit processing teams and branches.
Review past disbursements since April 1, 2024, to ensure cumulative subvention per IEC stays within the new limits.
Who it affects
Scheduled Commercial Banks (excluding RRBs), Primary (Urban) Cooperative Banks, State Cooperative Banks with AD Category-I license, Exim Bank, MSME manufacturer exporters, Non-MSME manufacturer and merchant exporters
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Is the IES extension applicable to all exporters?
No, the extension from September 1 to 30, 2024, is only for MSME manufacturer exporters. Non-MSME exporters are not covered under this extension.
What are the new subvention caps per IEC?
The annual cap is ₹10 crore per IEC. For MSME manufacturer exporters, a ₹5 crore cap applies till September 30, 2024. For non-MSME manufacturer and merchant exporters, the cap is ₹2.5 crore per IEC till June 30, 2024.
Do other terms of the IES remain the same?
Yes, all other provisions of the scheme as per earlier RBI instructions remain unchanged. Only the extension period and caps have been modified.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
RBI’s words: “Please refer to the instructions issued vide circular No. DOR.STR.REC.44/04.02.001/2024-25 dated September 20, 2024”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #101: DOR.STR.REC.44/04.02.001/2024-25 — "Interest Equalization Scheme (IES) on Pre and Post Shipment Rupee Export Credit" dated September 20, 2024”
📜 Read the original circular — full text as issued by RBI
RBI/2024-25/76
DOR.STR.REC.44/04.02.001/2024-25
September 20, 2024
All Scheduled Commercial Banks (excluding RRBs),
Primary (Urban) Cooperative Banks & State Cooperative Banks (scheduled banks
having AD category-I license), and
Exim Bank
Madam/ Sir,
Interest Equalization Scheme (IES) on Pre and Post Shipment Rupee Export Credit
Please refer to the instructions issued vide circular No.DOR.STR.REC.41/04.02.001/2024-25 dated August 29, 2024 .
2. Government of India (Gol), vide Trade Notice No.16/2024-2025 dated August 31, 2024, read with Trade Notice No.17/2024-2025 dated September 17, 2024, has allowed for an extension of the Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit ('Scheme') from September 1, 2024, to September 30, 2024.
3. Further, the Government has advised the following modifications/clarifications to the Scheme:
a) The aforesaid extension is applicable only for MSME Manufacturer exporters.
b) The annual net subvention amount is capped at ₹10 Crore per Importer-Exporter Code (IEC) for a given financial year, accordingly a cap of ₹5 Crore per IEC for MSME Manufacturer exporters is imposed till September 30, 2024, for the financial year starting from April 1, 2024.
c) It is further advised that for Manufacturer Exporters and Merchant Exporters under the non-MSME category, the cap shall be ₹2.5 Crore per IEC till June 30, 2024, as per the Government's Trade Notice No.17/2024-2025 dated September 17, 2024.
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/2024-25/76 · issued 20 Sep 2024. The plain-English explanation above is BankPulse’s own independent summary.
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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=12734&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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