All Scheduled Commercial Banks
Small Finance Banks and
Primary (Urban) Cooperative Banks
Dear Sir / Madam,
Interest Equalisation Scheme on
Pre and Post Shipment Rupee Export Credit
Please refer to the operational
instructions for the captioned scheme contained in RBI circular on Interest
Equalisation Scheme on Pre and Post Shipment Rupee Export Credit issued
vide DBR.Dir.BC.No.62/04.02.001/2015-16 dated
December 4, 2015 and DCBR.CO.SCB.Cir.No.1/13.05.000/2015-16
dated February 11, 2016.
2. In this regard, it has been
decided by the Government of India to increase w.e.f. November 02, 2018
Interest Equalisation rate from 3% to 5% in respect of exports by the
Micro, Small & Medium Enterprises (MSME) sector manufacturers under the
Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit.
3. In terms of para 2(c) of the
Annex to the aforesaid RBI circulars, the Scheme is available to all exports
under 416 tariff lines [at ITC (HS) code of 4 digits] and exports made by
MSMEs across all ITC(HS) codes. It is therefore, advised that the benefit
of the scheme be provided to all eligible MSME Exporters.
(Prasant K Seth)