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28 December 2015

Interest Equalisation Scheme on pre and post shipment export credit

Reserve Bank of India has allowed exporters to avail the Interest Equalisation on Pre and Post Shipment Rupee Export Credit. The scheme is effective from April 1, 2015. For the period April 1, 2015 to November 30, 2015, banks are required to identify eligible exporters as per Government of India Scheme and credit their accounts with the required interest equalisation amount. From the month of December, 2015 onwards, banks are required to reduce the interest charged to eligible exporters on interest rates on advances by the rate of interest equalisation provided by the Government of India.

Interest equalisation can be availed by eligible exporters only during the period of the scheme being in force. It can avail the benefit from the date of disbursement up to the date of repayment or up to the date beyond which the outstanding export credit becomes overdue. RBI Notification RBI/2015-16/259 DBR.Dir.BC.No.62/04.02.001/2015-16, dated 4-12-2015 issued in this regard also prescribes procedure for claiming reimbursement of interest equalisation benefit already passed on to eligible exporters.

 

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