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The Southern India Mills’ Association

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Merchant exporters included in interest equalisation scheme, says RBI

The Reserve Bank of India (RBI) on Friday notified that the Government has decided to include merchant exporters under the ongoing Interest Equalisation Scheme for Pre and Post Shipment Rupee Export Credit with effect from January 2.
This move will allow merchant exporters interest equalisation at the rate of three per cent on credit for export of products covered under 416 tariff lines identified under the Scheme.
Under the scheme, banks will reduce the interest rate charged to the eligible exporters as per RBI’s extant guidelines on interest rates on advances by the rate of interest equalisation provided by Government of India.
The interest equalisation benefit will be available from the date of disbursement up to the date of repayment or up to the date beyond which the outstanding export credit becomes overdue.