CURRENT AFFAIRS

Detailed explanation-1: -2. Government of India has approved the extension of Interest Equalization Scheme for Pre and Post Shipment Rupee Export Credit (’Scheme’) up to March 31, 2024 or till further review, whichever is earlier.

Detailed explanation-2: -The Interest Equalization Scheme (IES) was first implemented on April 1, 2015, to provide pre and post-shipment export credit to exporters in rupees. An eligible exporter has to submit a certification of the external auditor to the concerned bank to claim this benefit.

Detailed explanation-3: -Extension of Interest Equalization Scheme The extension takes effect from 01-10- 2021 and ends on 31-03- 2024. Revised interest equalization rates under Scheme will now be 3 % for MSME manufacturer exporters exporting under any HS lines and 2 % for exporters exporting under 410 HS lines.

Detailed explanation-4: -Packing Credit can be extended to merchant/manufacturing exporters for the period of his operating cycle subject to maximum of 180 days.

Detailed explanation-5: -The revised interest equalisation rates under the scheme will now be 3% for MSME manufacturer exporter exporting under any HS lines and 2% for manufacturer exporters and merchant exporters exporting under 410 HS lines (excluding 6 HS lines of the telecom sector), the RBI notification said.