Interest Equalisation Scheme Extended Till Dec 31, 2024 with MSME Cap
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2024-25/80 · issued 09 Oct 2024 · ~2 min read
Quick answerRBI extends Interest Equalisation Scheme on rupee export credit for MSMEs by three months to Dec 31, 2024. New cap: aggregate fiscal benefit per MSME limited to ₹50 lakh for FY2024-25 till Dec 31. MSMEs already availing ₹50 lakh or more by Sep 30, 2024 are ineligible for further benefits.
What changed
The Government of India extended the Interest Equalisation Scheme for pre and post shipment rupee export credit by three months to December 31, 2024. A new aggregate cap of ₹50 lakh per MSME for FY2024-25 till December 31, 2024 was introduced. MSME manufacturer exporters who already received ₹50 lakh or more in benefits up to September 30, 2024 cannot claim any further benefit during the extended period.
What it means for you
Banks must immediately update their systems to track cumulative interest equalisation benefits per MSME borrower against the ₹50 lakh cap for FY2024-25. Lenders need to stop disbursing benefits to MSMEs that have already hit the ₹50 lakh threshold as of September 30, 2024. This extension provides continued support for export credit but with tighter fiscal discipline, requiring banks to monitor and report compliance accurately.
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 cap aggregate interest equalisation benefits per MSME at ₹50 lakh for FY2024-25 till December 31, 2024.
Identify MSME manufacturer exporters who have already availed ₹50 lakh or more in benefits up to September 30, 2024 and flag them as ineligible for further claims.
Ensure all other terms and conditions from the September 20, 2024 circular remain unchanged and are communicated to relevant branches.
Train frontline staff and credit officers on the new cap and eligibility rules to avoid incorrect disbursements.
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 availing rupee export credit
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 02:49 IST
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).
What is the new aggregate cap for MSMEs under the extended scheme?
The aggregate fiscal benefit per MSME is restricted to ₹50 lakh for the Financial Year 2024-25 till December 31, 2024.
Are MSMEs that already received ₹50 lakh in benefits by September 30, 2024 eligible for further benefits?
No, such MSMEs are not eligible for any further benefit during the extended period from October 1 to December 31, 2024.
Does this circular change any other terms of the Interest Equalisation Scheme?
No, all other terms and conditions from the extant instructions remain unchanged.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #100: DOR.STR.REC.45/04.02.001/2024-25 — "Interest Equalization Scheme (IES) on Pre and Post Shipment Rupee Export Credit" dated October 9, 2024”
📜 Read the original circular — full text as issued by RBI
RBI/2024-25/80
DOR.STR.REC.45/04.02.001/2024-25
October 9, 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.44/04.02.001/2024-25 dated September 20, 2024 .
2. Government of India, vide Trade Notice No.18/2024-2025 dated September 30, 2024, has allowed for an extension of the Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit ('Scheme') for three months up to December 31, 2024, with the following modifications to the Scheme:
Fiscal benefits of each MSME, on aggregate, will be restricted to ₹50 lakhs for the Financial Year 2024-25 till December 31, 2024.
Accordingly, MSME manufacturer exporters who have already availed equalisation benefits of ₹50 lakhs or more in the Financial Year 2024-25 till September 30, 2024, will not be eligible for any further benefit in the extended period.
3. Other terms and conditions/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/2024-25/80 · issued 09 Oct 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=12738&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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