Dear Sir/ Madam,

As you are aware,  the Cabinet Committee on Economic Affairs (CCEA) has recently  announced the Interest Equalisation Scheme on Pre and Post Shipment Rupee Export Credit to eligible exporters. The scheme is effective from April 1, 2015.

The features of the Interest Equalisation Scheme are as follows:

* The scheme would be available to all the  exports of MSME’s.    Additionally,   exports of         identified  416 tariff lines are covered for Non-MSME exporters.

* Scheme would not be available to merchant exporters.

* The duration of the scheme would be five years with effect from 1.4.2015.  The scheme will     be evaluated after three years.

In this regard, RBI has issued operational guidelines vide circular no. RBI/2015-16/259 & DBR.Dir.BC.No.62/04.02.001/2015-16 dated 4 th December 2015  for scheduled commercial banks.    The circular with  full details  is attached herewith for your  reference.

Member-exporters are requested to take note of the same.  For further queries on documentation/ entitlement/ interest payment etc,  they may contact their  relevant bank branch.

Thanking You,

Yours faithfully,

(S.G. BHARADI)

ACTG. EXECUTIVE DIRECTOR

Encl : RBI Circular