The Reserve Bank of India on 1st July 2021 has extended the Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit, with the same scope and coverage, for a further period of three months, i.e., up to September 30, 2021.
The extension takes effect from July 01, 2021, and ends on September 30, 2021, covering a period of three months. The scheme, announced in April 2015, gives subsidies on interest provided on pre-and post-shipment export credit varying between 3% and 5% to exporters.
The banks give credit at lower interest rates to exporters and the differential amount is later refunded by the government.
