Circular No.ES/73/2015-16 February 15, 2016
To : Members of the Council
Sub: Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit
Dear Member,
As you are aware the Government of India had announced the Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit to eligible exporters w.e.f. April 1, 2015.
The features of the Interest Equalisation Scheme includes :
(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 and made ups covered under Chapter 61-63, fabrics of all types and exports made by Micro, Small & Medium Enterprises (MSMEs) across all ITC(HS) codes. List of HS Lines from Chapter 54 to 63 (of MMF Textiles) covered under the Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit is enclosed.
(d) Scheme would not be available to merchant exporters.
Accordingly, RBI has now issued Circular No. RBI/2015-16/322 DCBR.CO.SCB.Cir.No.1/13.05.000/ 2015-16 dated February 11, 2016 advising scheduled Urban Cooperative Banks holding AD Category I licences who are eligible under the Scheme to adhere to the following operational procedure for claiming reimbursement:
(A) Procedure for passing on the benefit of interest equalisation to exporters:
(i) For the period April 1, 2015 to January 31, 2016 banks shall identify the eligible exporters as per the Government of India scheme and credit their accounts with the eligible amount of interest equalisation.
(ii) From the month of February 2016 onwards, banks shall 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.
(iii) 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. However, the interest equalisation will be available to the eligible exporters only during the period the scheme is in force.
(B) Procedure for claiming reimbursement of interest equalisation benefit already
passed on to eligible exporters:
(i) The sector-wise consolidated reimbursement claim for the period April 1, 2015 to January 31, 2016 for the amount of interest equalisation already passed on to eligible exporters should be submitted to RBI by February 29, 2016.
(ii) The sector-wise consolidated monthly reimbursement claim for interest equalisation for the period February 2016 onwards should be submitted in original within 15 days from the end of the respective month, with bank's seal and signed by authorised person, in the prescribed format.
(iii) The claims should be accompanied by an External Auditor's Certificate (with stamp and membership number) certifying that the claim for interest equalisation of Rupees…………….. for the month ended ………….. has been verified and found to be strictly in accordance with the provisions of the Government scheme enclosed with the circular DCBR.CO.SCB.Cir. No.1/13.05.000/2015-16 dated February 11, 2016. Claims for reimbursement will be considered for settlement only after receipt of this certificate.
(iv) The claims may be submitted to the Principal Chief General Manager, Department of Cooperative Bank Regulation, Reserve Bank of India, Central Office, C-7 Bandra Kurla Complex, 1st and 2nd Floor, Bandra (East), Mumbai – 400051.
(v) The reimbursement of interest equalisation claim will be made as and when the funds are received from Government of India.
Members may make a note of the above.
Thanking you,
V.ANIL KUMAR
EXECUTIVE DIRECTOR
