Reserve Bank of India (RBI) has extended the Interest Equalisation Scheme for Pre and Post shipment Rupee Export Credit, with same scope and coverage, for three more months.
The extension is effective from 1 April 2021, and ends on 30 June 2021, covering a period of three months.
This move of RBI, the central bank of India, will support the apparel exporters also.
Raja M. Shanmugham, President, Tirupur Exporters Association (TEA),has welcomed this decision and expects the Government to take into account various adverse factors, including the business impact of coronavirus in foreign markets.He also wants the scheme to be extended at least for one more year.
The scheme was announced for a period of five years in the Foreign Trade Policy (2015-20),which lapsed on 31 March 2021.
Exporters get a subsidy on interest provided on pre- and post-shipment export credit ranging between 3 per cent and 5 per cent. The banks provide credit at a lower interest rate to exporters – later reimbursed by the Government.