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      Question

      Which statement correctly describes the scope/benefit of

      India’s Interest Equalisation Scheme as used in recent years?
      A It subsidizes interest rates for real-estate loans for foreign buyers Correct Answer Incorrect Answer
      B It provides interest equalisation on rupee export credit (pre- and post-shipment) for eligible exporters (with differentiated rates for MSME manufacturers and certain tariff lines) Correct Answer Incorrect Answer
      C It gives direct grants to all consumers buying EVs Correct Answer Incorrect Answer
      D It is only for internal municipal bond issuance Correct Answer Incorrect Answer
      E It is a guaranteed minimum deposit rate for senior citizens Correct Answer Incorrect Answer

      Solution

      The Interest Equalisation Scheme offers an interest subsidy (equalisation) on pre- and post-shipment rupee export credit to support exporters (with specific rates for MSME manufacturer exporters and for notified tariff lines), implemented through banks and reimbursed via government procedures. 

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