2% Interest Subvention Scheme on Rupee export credit – continuation during 2012-13
June 26, 2012
Members of the Council
Sub : 2% Interest Subvention Scheme on Rupee export credit – continuation during 2012-13
Members are aware that an announcement was made in the Annual Supplement 2012-13 to the Foreign Trade Policy 2009-14 about continuation of the 2% interest subvention scheme on rupee export credit during the year 2012-13. The Reserve Bank of India has now issued a Circular No.RBI/2011-12/608 dated June 19, 2012 informing about extension of interest subvention of 2% on rupee export credit with effect from April 1, 2012 to March 31, 2013 to the following sectors :
iv. Small and Medium Enterprises (SMEs) (as defined in Annex)
v. Readymade Garments
vi. Processed Agriculture Products
vii. Sport Goods
As far as leather sector is concerned, Small and Medium Enterprises (SMEs) in the leather sector can avail this scheme during the year 2012-13.
The aforesaid RBI circular mentions that banks may reduce the interest rate chargeable to the exporters as per Base Rate system in the above mentioned sectors eligible for export credit subvention by the amount of subvention available subject to a floor rate of 7% and also states that Banks may ensure to pass on the benefit of 2% interest subvention completely to the eligible exporters.
Members may kindly note the above.
D. Saalai Maraan
COUNCIL FOR LEATHER EXPORTS