The Reserve Bank of India (RBI) has issued a notification for extending the 2% Rupee Export Credit Interest Rate Subvention Scheme till March 31, 2014 for nine different sectors, including readymade garments, handlooms, carpet and handicrafts.
Under the scheme, commercial banks would pass on the benefit of 2% interest subvention to eligible exporters. Accordingly, banks will reduce the interest rate chargeable to the exporters as per Base Rate system by the amount of subvention available subject to a floor rate of 7%.