RUPEE EXPORT CREDIT - INTEREST RATE SUBVENTION

Reserve Bank of India (RBI) master circular requires banks to pass on the benefit of 2 % / 4 % interest subvention completely to the eligible exporters upfront and submit the claims to RBI for reimbursement, duly certified by the independent auditor. As per RBI, banks are advised to ensure strict adherence to the extant instructions and initiate corrective measures to ensure strict compliance to the guidelines.