{"id":24629,"date":"2024-06-30T09:25:16","date_gmt":"2024-06-30T03:55:16","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=24629"},"modified":"2025-04-07T10:54:44","modified_gmt":"2025-04-07T05:24:44","slug":"interest-equalisation-scheme","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/interest-equalisation-scheme\/","title":{"rendered":"Interest Equalisation Scheme"},"content":{"rendered":"<h2><strong>About Interest Equalisation Scheme:\u00a0<\/strong><\/h2>\n<ul>\n<li>It was first implemented on <strong>1st April, 2015<\/strong>, to provide pre- and post-shipment <strong>export credit<\/strong> to <strong>exporters in rupees.<\/strong><\/li>\n<li>It was initially <strong>valid for 5 years,<\/strong> up to 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><strong>Implementing agency:<\/strong> It is being <strong>implemented by the RBI through<\/strong> various Public and non-Public Sector banks who provide pre- and post-shipment credit to the exporters.\u00a0<\/li>\n<li>The Scheme is <strong>jointly monitored<\/strong> by the <strong>Directorate General of Foreign Trade<\/strong> (DGFT) and the RBI through a consultative mechanism.<\/li>\n<li>The scheme helps the identified export sectors to be internationally competitive and to achieve a high level of export performance.<\/li>\n<li><strong>Features:<\/strong>\n<ul>\n<li>An eligible exporter has to <strong>submit a certification<\/strong> from the external auditor to the <strong>concerned bank to claim this benefit.<\/strong><\/li>\n<li>Banks <strong>provide IES benefits<\/strong> 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 interest equalisation benefit at the rate of <strong>2% on pre- and post-shipment <\/strong>rupee export credit to merchant and manufacturer exporters of 410 identified tariff lines at 4-digit level and 3% to all MSME manufacturer exporters.\u00a0<\/li>\n<li>The Scheme has now been made fund-limited, and the benefit to individual exporters has been capped <strong>at Rs 10 Crore <\/strong>per annum per IEC (Import Export Code).\u00a0<\/li>\n<li>In addition, the banks that lend to exporters at an average rate 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?<\/h3>\n<p>It is a government organization in India responsible for the formulation of exim guidelines and principles for Indian importers and Indian exporters of the country.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/business\/interest-equalisation-scheme-extended-for-msme-exporters\/article68348217.ece\" target=\"_blank\" rel=\"nofollow noopener\"><u>Interest equalisation scheme extended for MSME exporters<\/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":24630,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-24629","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\/24629","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=24629"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/24629\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/24630"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=24629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=24629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=24629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}