RBI directs urban co-op banks to extend interest subvention for exporters

With a view to encouraging exports, Reserve Bank of India, RBI has directed urban co-operative banks to extend interest subvention of 2 per cent for exporters in segments like handicraft, carpets,small and medium enterprises and certain engineering goods, by a year till March 2014. 

RBI in its notification has said that it has also been decided to extend the interest subvention of 2 per cent on rupee export credit on specified export sectors from 1st April 2013 to March 31, 2014. 

Other sectors which will be benefit from the extension of the scheme are, handlooms, readymade garments, processed agriculture products, sports goods,toys and 134 engineering good items. Under the scheme, banks would reduce the interest rate chargeable to exporters.