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RBI CIRCULAR

RBI

CIRCULAR

Amendment to Master Direction on Pre- 2022 and DOR.STR.REC.39/04.02.001/2022-23 dated
May 31, 2022.
paid Payment Instruments
2. Government of India has allowed for extension of the
February 23, 2024 Interest Equalization Scheme for Pre and Post Shipment
Rupee Export Credit ('Scheme') up to June 30, 2024.
1. This has reference to the Master Directions
The rate of interest equalization shall be 2% for Manu-
CO.DPSS.POLC.No.S-479/02.14.006/2021-22 dated Au- facturers and Merchant Exporters exporting under
gust 27, 2021 on Prepaid Payment Instruments (MD-
specified 410 HS lines and 3% to the MSME manufac-
PPIs) (as amended from time to time), which prescribes,
turers exporting under any HS line.
inter alia, the various types of PPIs which banks and
non-banks can issue after obtaining necessary approval 3. Further, Government has advised the following modifi-
/ authorisation from RBI. cations to the scheme:
a. Average interest rate: With effect from FY 2023-
2. Public transport systems across the country cater to a
24, the banks which have priced the loans covered
multitude of commuters on a daily basis. To provide
convenience, speed, affordability, and safety of digital under this scheme at an average interest rate of
greater than Repo Rate + 4% prior to subvention
modes of payment to commuters for transit services,
it has been decided to permit authorised bank and non- would be subjected to certain restrictions under
bank PPI issuers to issue PPIs for making payments the scheme. Based on an assessment undertaken
for FY 2023-24, Director General of Foreign Trade
across various public transport systems. The MD-PPIs
has been updated by revising paragraph 10.2 thereof. (DGFT) will identify the banks which are in breach
of the above provision. Such banks shall be re-
3. These instructions are issued under Section 18 read stricted from participating in the scheme till they
with Section 10 (2) of Payment and Settlement Systems
furnish an undertaking (in the format as enclosed
Act, 2007 (Act 51 of 2007). These instructions shall in the Annex) to DGFT. Any further breach as as-
come into effect immediately.
sessed by DGFT thereafter may lead to debarment
Interest Equalization Scheme (IES) on Pre from the scheme.
b. Cap on subvention amount: The annual net subven-
and Post Shipment Rupee Export Credit
tion amount has been already capped at Rs 10 Cr
February 22, 2024 per Importer-Exporter Code (IEC) in a given finan-
cial year and the same has been communicated to
1. Please refer to the instructions issued vide circulars No. the trade & industry and banks vide DGFT Trade
DOR.STR.REC.93/04.02.001/2021-22 dated March 8, Notice No.05 dated May 25, 2023. Accordingly, all

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