Page 59 - Banking Finance September 2024

RBI CIRCULAR

RBI

CIRCULAR

Scheme for Trading and Settlement of 1. Please refer to the instructions issued vide circular No.
DOR.STR.REC.78/04.02.001/2023-24 dated February 22,
Sovereign Green Bonds in the Interna- 2024.

tional Financial Services Centre in India 2. Government of India, vide Trade Notice No.07/2024-
August 29, 2024 2025 dated June 28, 2024 read with Trade Notice
No.08/2024-2025 dated July 10, 2024 has allowed for
an extension of the Interest Equalization Scheme for
1. Please refer to Paragraph 1 of the Statement on De- Pre and Post Shipment Rupee Export Credit ('Scheme')
velopmental and Regulatory Policies announced as a up to August 31, 2024. The extension takes effect from
part of the Bi-monthly Monetary Policy Statement for July 1, 2024 and ends on August 31, 2024.
2024-25 dated April 05, 2024, on the issuance of a
scheme for investment and trading in Sovereign Green 3. Further, Government has advised the following modifi-
Bonds (SGrBs) by eligible foreign investors in the Inter- cations to the scheme:
national Financial Services Centre (IFSC) in India. a. Eligibility of borrowers: With effect from July 1,
2. The Scheme for trading and settlement of SGrBs in the 2024, only MSME Manufacturer exporters would
IFSC in India (the “Scheme”) is enclosed at Annex. Nec- be eligible under the Scheme. Hence, the Scheme
essary amendments to the Foreign Exchange Manage- benefits will not be available to non-MSME export-
ment (Debt Instruments) Regulations, 2019 (Notifica- ers, and such claims are not to be entertained
tion No. FEMA 396/2019-RB dated October 17, 2019) beyond June 30, 2024.
have been notified vide Foreign Exchange Management b. Cap on subvention amount: The interest equaliza-
(Debt Instruments) (Third Amendment) Regulations, tion will be capped at Rs. 1.66 Crore per Importer-
2024 (Notification No. FEMA.396(3)/2024-RB dated Exporter Code (IEC) for the aforesaid extended pe-
August 02, 2024) published in the Gazette of India on riod of the scheme.
August 07, 2024.
4. Other provisions of the extant instructions issued by the
3. The Scheme shall come into force with immediate ef- Bank on the captioned Scheme shall remain unchanged.
fect. The operational guidelines for participation in the
Scheme by entities in IFSC shall be issued by the IFSC Processing of e-mandates for recurring
Authority.
transactions
Interest Equalization Scheme (IES) on Pre August 22, 2024

and Post Shipment Rupee Export Credit 1. A reference is invited to our circulars

August 29, 2024 DPSS.CO.PD.No.447/02.14.003/2019-20 dated August

BANKING FINANCE | SEPTEMBER | 2024 | 53