Page 59 - Banking Finance October 2024
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RBI CIRCULAR





                           RBI




                  CIRCULAR













         Interest Equalization Scheme (IES) on Pre            4. Other provisions of the extant instructions issued by the
                                                                 Bank on the captioned Scheme shall remain unchanged.
         and Post Shipment Rupee Export Credit
                                          September 20, 2024 Implementation of Section 12A of the
                                                              Weapons of Mass Destruction and their
         1. Please refer to the instructions issued vide circular
             No.DOR.STR.REC.41/04.02.001/2024-25 dated August  Delivery Systems (Prohibition of Unlaw-
             29, 2024.                                        ful Activities) Act, 2005: Designated List
         2. Government of India (Gol), vide Trade Notice No.16/  (Amendments)
             2024-2025 dated August 31, 2024, read with Trade
             Notice No.17/2024-2025 dated September 17, 2024, has                             September 19, 2024
             allowed for an extension of the Interest Equalization
                                                              1. Please refer to Section 52 of our Master Direction on
             Scheme for Pre and Post Shipment Rupee Export Credit
             ('Scheme') from September 1, 2024, to September 30,  Know Your Customer dated February 25, 2016 as
             2024.                                               amended on January 04, 2024 (MD on KYC), in terms
                                                                 of which, inter alia, “Regulated Entities (REs) shall en-
         3. Further, the Government has advised the following    sure meticulous compliance with the “Procedure for
             modifications/clarifications to the Scheme:         Implementation of Section 12A of the Weapons of Mass
             a) The aforesaid extension is applicable only for   Destruction (WMD) and their Delivery Systems (Prohi-
                 MSME Manufacturer exporters.                    bition of Unlawful Activities) Act, 2005” laid down in
                                                                 terms of Section 12A of the WMD Act, 2005 vide Or-
             b) The annual net subvention amount is capped at Rs.
                 10 Crore per Importer-Exporter Code (IEC) for a  der dated September 01, 2023, by the Ministry of Fi-
                 given financial year, accordingly a cap of Rs. 5  nance, Government of India (Annex III of the Master
                 Crore per IEC for MSME Manufacturer exporters   Direction on Know Your Customer).”
                 is imposed till September 30, 2024, for the finan-  2. Further, in terms of Section 53 of our MD on KYC “the
                 cial year starting from April 1, 2024.          REs shall verify every day, the ‘UNSCR 1718 Sanctions
                                                                 List of Designated Individuals and Entities‘, as available
             c)  It is further advised that for Manufacturer Export-
                 ers and Merchant Exporters under the non-MSME   at https://www.mea.gov.in/Implementation-of-UNSC-
                 category, the cap shall be Rs. 2.5 Crore per IEC till  Sanctions-DPRK.htm, to take into account any modifi-
                 June 30, 2024, as per the Government's Trade    cations to the list in terms of additions, deletions or
                 Notice No.17/2024-2025 dated September 17,      other changes and also ensure compliance with the
                 2024.                                           ‘Implementation of Security Council Resolution on


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