The Reserve Bank of India (RBI) on Tuesday gave a big gift to the exporters. The central bank extended the Interest Equalization Scheme for pre and post shipment rupee credit for MSME exporters till March 2024 with an aim to boost outbound shipments. Explain that exporters get subsidy under this. Earlier last year in April 2021, this scheme was extended twice till the end of June and till September 2021.
According to the notification of the Reserve Bank, the government has decided to extend the interest equalization scheme on pre and post export loans in rupee denomination till March 31, 2024 or till further review, whichever is earlier. This extension is effective from October 1, 2021 and ends on March 31, 2024. RBI said the interest equalization rates under the scheme have been revised to 2 per cent and 3 per cent for specified categories of MSME manufacturer exporters. It is worth noting that the main objective of this scheme is to encourage exports. The exporters are given subsidy under the interest equalization scheme. Explain that India’s merchandise exports in February 2022 were $33.81 billion, which was 22.36 percent higher than $27.63 billion in the same month of 2021.