SBI chief Rajnish Kumar calls for simpler interest subvention process for exporters

Banks can then avail reimbursement of the subsidised interest from the Reserve Bank of India (RBI).

State Bank of India (SBI) chairman Rajnish Kumar. (File)

State Bank of India (SBI) chairman Rajnish Kumar on Thursday called for simplifying the interest equalisation scheme for exporters. Under the scheme, banks provide a rebate to exporters of up to 5 per cent on pre- and post-shipment credits.

Banks can then avail reimbursement of the subsidised interest from the Reserve Bank of India (RBI).

Kumar said that procedures under the scheme are “unnecessarily complicated” and need further simplification. The lender may take up the matter with the RBI after further consulting exporters. Kumar’s first suggestion was that exporters should avail the interest subvention only on post-shipment basis. —FE

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