The government on Thursday capped the amount of interest subvention at Rs 10 crore per IEC (import-export code) holder in one financial year.
In March last year, the RBI extended the interest equalisation scheme for pre and post-shipment rupee credit for MSME exporters till March 2024 with the objective of boosting outbound shipments. Exporters get subsidies under the 'Interest Equalisation Scheme for pre and post-shipment Rupee Export Credit'.
"The annual net subvention amount would be capped at Rs 10 crore per IEC in a given financial year. All disbursements made from April 1, 2023, shall be counted for an IEC for the current financial year," the directorate general of foreign trade (DGFT) said in a trade notice.
The interest equalisation rates under the scheme have been revised to 2 per cent and 3 per cent for specified categories of MSME manufacturer exporters.
Import-Export Code (IEC) is an important document required to undertake the business of inbound and outbound shipments.
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