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India extends Interest Equalisation Scheme until June 30

The Reserve Bank of India issued a circular on February ** to commercial banks of the country regarding this matter. The government has also advised a few modifications to the scheme. With effect from fiscal ****-**, the Director-General of Foreign Trade (DGFT) will assess compliance with the provisions at the bank level for those who have priced the loans covered under the scheme. DGFT may restrict banks from participating in the scheme until they furnish the necessary details.

The RBI has informed the banks that the annual net subvention amount has already been capped at &#****;** crore per Importer-Exporter Code (IEC) in a given fiscal. This information was communicated to the trade and industry sectors, as well as to banks, in May ****. All disbursements from April *, ****, shall be reckoned for this purpose accordingly. All other provisions of the aforementioned circulars shall remain unchanged.