{"id":17940,"date":"2023-12-09T06:52:55","date_gmt":"2023-12-09T01:22:55","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=17940"},"modified":"2025-04-05T07:39:17","modified_gmt":"2025-04-05T02:09:17","slug":"ies","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/ies\/","title":{"rendered":"What is Interest Equalisation Scheme (IES)?"},"content":{"rendered":"<h2>About Interest Equalisation Scheme (IES)<\/h2>\n<ul>\n<li>It was first implemented on\u00a01st April, 2015, to\u00a0provide pre- and post-shipment export credit to exporters in rupees.<\/li>\n<li>It was initially valid for 5 years, upto 31.3.2020. The scheme has been continued thereafter, including a one year extension during COVID and further extensions and fund allocations.\u00a0<\/li>\n<li>The scheme shall be\u00a0implemented by the RBI through various\u00a0Public and non-Public Sector banks\u00a0who provide pre- and post-shipment credit to the exporters.\u00a0<\/li>\n<li>The Scheme\u00a0is jointly monitored by the Directorate General of Foreign Trade (DGFT) and the RBI through a consultative mechanism.<\/li>\n<li>The scheme\u00a0helps the identified export sectors to be internationally competitive\u00a0and to achieve a high level of export performance.<\/li>\n<li>The scheme is\u00a0primarily meant for the labour intensive sectors.\u00a0<\/li>\n<li>Features:\n<ul>\n<li>An\u00a0eligible exporter has to submit a certification from the external auditor\u00a0to the concerned bank to claim this benefit.<\/li>\n<li>Banks provide IES benefits to the eligible exporters and claim a reimbursement from the RBI based on the external auditor certification furnished by the exporter.<\/li>\n<li>Currently, the Scheme provides an\u00a0interest equalisation benefit\u00a0at the rate of\u00a02% on pre- and post-shipment rupee export credit\u00a0to merchant and manufacturer exporters of 410 identified tariff lines at 4-digit level\u00a0and 3% to all MSME manufacturer exporters.\u00a0<\/li>\n<li>The Scheme has now been\u00a0made fund-limited, and the benefit to individual exporters has been\u00a0capped at Rs 10 Crore per annum per IEC (Import Export Code).\u00a0<\/li>\n<li>In addition, the\u00a0banks that lend to exporters\u00a0at an average\u00a0rate of more than Repo + 4% would be debarred under the Scheme.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1) What is the Directorate General of Foreign Trade (DGFT)?<\/h3>\n<p>The Directorate General of Foreign Trade (DGFT) Organization is an attached office of the Ministry of Commerce and Industry and is headed by the Director General of Foreign Trade. Right from its inception till 1991, when liberalization in the economic policies of the Government took place, this organization has been essentially involved in the regulation and promotion of foreign trade through regulation.\u00a0<\/p>\n<p><strong>Source:<\/strong> <a href=\"https:\/\/pib.gov.in\/PressReleaseIframePage.aspx?PRID=1984213\" target=\"_blank\" rel=\"nofollow noopener\"><u>Cabinet approves Additional allocation of Rs 2500 crore for continuation of Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit till 30.06.2024<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Interest Equalisation Scheme was first implemented on 1st April, 2015, to provide pre- and post-shipment export credit to exporters in rupees.<\/p>\n","protected":false},"author":5,"featured_media":17941,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-17940","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/17940","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=17940"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/17940\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/17941"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=17940"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=17940"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=17940"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}