The Synthetic & Rayon Textiles Export Promotion Council
Circular No.ES/41/2015-16 December 8, 2015
To: Members of the Council
Sub: Interest Equalisation Scheme on Pre & Post Shipment Rupee Export Credit
Dear Sir,
We are glad to inform you that the much awaited Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit has been announced by the Government vide RBI Notification No. RBI/2015-16/259 dated December 4, 2015
The scheme is effective from April 1, 2015 for a period of 5 years.
The details of the scheme are as follows :
(a) The rate of interest equalisation @ 3% per annum will be available on Pre Shipment Rupee Export Credit and Post Shipment Rupee Export Credit.
(b) The scheme would be applicable w.e.f 01.04.2015 for 5 years. Government, however, reserves the right to modify/amend the Scheme at any time.
(c) The scheme will be available to all exports under 416 tariff lines [at ITC (HS) code of 4 digit] including Readymade Garments & Made ups(Ch 61-63) and Fabric of all types as per Annexure given and exports made by Micro, Small & Medium Enterprises (
(d) Scheme would not be available to merchant exporters.
(e) Banks are required to completely pass on the benefit of interest equalisation, as applicable, to the eligible exporters upfront and submit the claims to RBI for reimbursement, duly certified by the external auditor.
(f) Ministry of Commerce and Industry will place funds in advance with RBI for a requirement of one month and reimbursement would be made on a monthly basis through a revolving fund system.
(g) All eligible exports under the scheme would have to meet the criteria of minimum processing for the goods to be called as Originating from India and would be governed by provision of Paragraph 2.108 (a) (Rules of Origin [Non preferential]) of Handbook of Procedures of Foreign Trade Policy 2015-2020
(h) A study may be initiated on the impact of the scheme on export promotion on completion of 3 years of the operation of the scheme. The study may be done through one of the IIMs.
(i) RBI shall send a monthly report to Deptt of Commerce/DGFT indicating reimbursement made commodity wise/bank wise, as per their prescribed format.
(j) Accordingly, RBI has advised scheduled commercial banks to adhere to the following operational procedure for claiming reimbursement:
(A). Procedure for passing on the benefit of interest equalisation to exporters:
(B). Procedure for claiming reimbursement of interest equalisation benefit already
passed on to eligible exporters
In context to the above Scheme, we are attaching herewith the following :
(1) RBI Notification No. RBI/2015-16/259 dated December 4, 2015
Members are requested to go through the guidelines and follow the instructions given in the above Notification and do the needful.
Thanking you,
V.ANIL KUMAR
EXECUTIVE DIRECTOR
PS: Definition of MSME :- The Government of India has enacted the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is provided as per RBI’s Master Circular - Lending to Micro, Small & Medium Enterprises (MSME) Sector vide Notification No. RBI/2015-16/74 FIDD.MSME & NFS.BC.No.07/06.02.31/2015-16 dated July 1, 2015.