Question
Consider the following statements about Interest
Equalisation Scheme:Â 1. It provides pre- and post-shipment export credit to exporters in rupees. 2. Union Cabinet recently approved an additional allocation of Rs 2500 crore for the continuation of the Interest Equalisation Scheme until June 30, 2024. 3. It is implemented by the EXIM Bank through various Public and non-Public Sector banks. Which of the statements given above is/are correct?Solution
The Union Cabinet has recently sanctioned an additional allocation of Rs 2500 crore to extend the Interest Equalisation Scheme until June 30, 2024. Launched on April 1, 2015, the scheme facilitates pre- and post-shipment export credit to exporters in rupees. Initially slated for a 5-year period ending on March 31, 2020, the scheme has seen continuous extensions, including a one-year prolongation amid the COVID-19 pandemic, along with subsequent extensions and fund allocations. The implementation of the scheme falls under the purview of the Reserve Bank of India (RBI), administered through various Public and non-Public Sector banks providing pre- and post-shipment credit to exporters. Oversight of the scheme is a collaborative effort between the Directorate General of Foreign Trade (DGFT) and the RBI through a consultative mechanism.
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