Bom. HC Refuses to Interfere with Mumbai University’s Decision to Cancel Admission of Student  ||  J&K HC: At Stage of Deciding Interim App., Trial Courts should Avoid Giving Observation on Merit of C  ||  Del HC: Furnishing Grounds of Arrest to Arrestee an Hour before Remand Isn’t Due Compliance of S. 50  ||  Ker. HC: Procee. against Subsequent Doctor Unwarranted if Initial Doctor has Reported POCSO Offence  ||  Delhi HC: Arbitrator Must Primarily Decide Construction of Terms of Contract  ||  Madras High Court: Can’t Use ‘Freedom of Press’ to Tarnish Reputation  ||  SC Dismisses Plea Seeking Prospective App. of Judgment allowing Interest for NH Land Acquisitions  ||  SC Restrains Union/States from Reducing Forest Land Unless Compensatory Land is Provided  ||  Supreme Court Pulls up Assam Govt. for Not Deporting Persons Declared as Foreigners  ||  SC: Can’t Dismiss Appeals of Accused & Victims under NIA Act on Ground of Delay beyond 90 Days    

Interest Equalization Scheme (IES) on Pre and Post Shipment Rupee Export Credit- (Reserve Bank of India) (22 Feb 2024)

MANU/RMIC/0019/2024

Banking

1. This is with reference to the instructions issued vide circulars No. DOR.STR.REC.93/04.02.001/2021- 22 dated March 8, 2022 and DOR.STR.REC.39/04.02.001/2022-23 dated May 31, 2022.

2. Government of India has allowed for extension of the Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit ('Scheme') up to June 30, 2024. The rate of interest equalization shall be 2% for Manufacturers and Merchant Exporters exporting under specified 410 HS lines and 3% to the MSME manufacturers exporting under any HS line.

3. Further, Government has advised the following modifications to the scheme:

a) Average interest rate: With effect from FY 2023-24, the banks which have priced the loans covered under this scheme at an average interest rate of greater than Repo Rate + 4% prior to subvention would be subjected to certain restrictions under the scheme. Based on an assessment undertaken for FY 2023-24, Director General of Foreign Trade (DGFT) will identify the banks which are in breach of the above provision. Such banks shall be restricted from participating in the scheme till they furnish an undertaking (in the format as enclosed in the Annex) to DGFT. Any further breach as assessed by DGFT thereafter may lead to debarment from the scheme.

b) Cap on subvention amount: The annual net subvention amount has been already capped at Rs 10 Cr per Importer-Exporter Code (IEC) in a given financial year and the same has been communicated to the trade & industry and banks vide DGFT Trade Notice No.05 dated May 25, 2023. Accordingly, all disbursement from April 1, 2023 shall be reckoned for this purpose.

4. All other provisions of the aforesaid circulars shall remain unchanged.

Tags : IES   PRE AND POST SHIPMENT  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved