The RBI has extended the Interest Equalization Scheme for exporters for three more months till June 30, 2021
"The extension takes effect from April 1, 2021, and ends on June 30, 2021, covering a period of three months," the RBI (Reserve Bank of India) said in a statement on Tuesday.
"Consequently, the extant operational instructions issued by the Reserve Bank under the scheme shall continue to remain in force up to June 30, 2021," it added.
The commerce ministry had been trying to ensure that the interest equalization scheme, which lapsed on March 31, got extended by the RBI, to help Indian exporters struggling to manage their business in the uncertain global market, amid the COVID-19 pandemic.
The scheme, announced in April 2015, gives subsidy on interest provided on pre-and post-shipment export credit varying between 3% and 5% to exporters.
The banks give credit at lower interest rates to exporters and the differential amount is later refunded by the government.
Besides, the MSME exporters of all items, exporters of 416 identified products are also eligible to avail of the benefit.