DGFT online IT Module for Interest Equalisation Scheme

The Reserve Bank of India (RBI) has extended the interest equalization scheme for pre and post-shipment rupee credit for MSME exporters till March 2024 vide a Notification dated March 8, 2022. To capture granular data about the scheme's beneficiaries and effective monitoring, the Directorate General of Foreign Trade has introduced the DGFT online IT Module for Interest Equalization Scheme vides a Trade notification dated 15^th March 2022. All exporters seeking benefits under the DGFT online IT Module for Interest Equalization Scheme must apply online through the DGFT new Online Module for Interest Equalization Scheme. Know more about the Modified Norms of / Extension of Interest Equalization Scheme for MSME Exporters

Interest Equalisation Scheme

The Interest Equalization Scheme (IES) was first implemented on April 1, 2015, to provide pre and post-shipment export credit to exporters in rupees. An eligible exporter has to submit a certification of the external auditor to the concerned bank to claim this benefit. Banks provide Interest Equalization Scheme benefits to the eligible exporters and claim a reimbursement from the Reserve Bank of India based on the external auditor certification furnished by the Exporter. The scheme helps the identified export sectors to be internationally competitive and to achieve a higher level of export performance.

New Process as part of the New IES Module

The applications to avail of the benefit of the Interest Equalization Scheme will need to be submitted directly to DGFT through the new Online Module with effect from 21.02.2022.

Unique IES Identification Number (UIN)

A Unique IES Identification Number (UIN) will be generated automatically. It must be submitted to the concerned bank when availing Interest Equalization against their pre and post-shipment rupee export credit applications.

The auto-generated Acknowledgement containing the UIN number needs to be submitted to the concerned bank along with the prescribed application by the bank for availing benefit under IES.
It will be mandatory for the Exporter to submit UIN acknowledgment to the concerned bank for all applications made on or after 01.04.2022.
Banks will continue to scrutinize and issue benefits as per their internal process. The guidelines for the bank for validation of submission made by the Exporter are being issued separately through RBI.

The official Notification of DGFT about the Replenishment Authorization is attached here for reference: [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2022/03/Trade-Notice-No.-38-2021-22.pdf" title="DGFT online IT Module for Interest Equalisation Scheme"]

The validity of Unique IES Identification Number

The UIN generated shall have a validity of 1 year from the date of registration, during which an application for availing benefit of IES can be submitted to the concerned bank.

Prerequisites for generating UIN

The following are the prerequisites required to apply for Interest Equalization Scheme:

The DGFT user profile must be linked with an importer-exporter Code
The IEC (ANF-2A) and the Exporter-Importer Profile(ANF-1) are updated to reflect correct and up-to-date details.

Application fee for Generating UIN

The user charge for generating a UIN shall be Rs.200 and is to be paid online.

Application Procedure for Interest Equalization Scheme

The application procedure for applying the Interest Equalization Scheme in the DGFT Services through the Exporter's dashboard on the DGFT Website is as follows:

New User Registration

Any exporter seeking to apply under IES must register on the DGFT Website (if not already registered). Access the official webpage of DGFT and proceed with the registration process. Provide the Registration Details and Select Register User as "Exporter/Exporter." Furnish the OTPs received on email and mobile number; upon Successful validation of the OTP, you can receive a notification containing the temporary password, which you need to change upon the first login.

Apply for Interest Equalization Scheme

After login into the DGFT web portal, navigate to the Services option and select Interest Equalization Scheme. The link will redirect to the application page and furnish all the required details. Primary data about the applicant's IEC would get auto-populated.

Get a Unique IES Identification Number (UIN)

An acknowledgment containing a Unique IES Identification Number (UIN) would be auto-generated when a duly completed application is submitted online. An SMS and email intimation of the UIN generated will be sent to the registered email account and mobile number of the Exporter. Note: After the generation of the UIN, no changes will be allowed. In case of any correction, an amendment exporter may generate a new UIN.

Submit UIN to Bank

As mentioned above, the auto-generated Acknowledgement containing the UIN number needs to be submitted to the concerned bank along with the prescribed application by the bank for availing benefit under IES. Banks will continue to scrutinize and issue benefits as per their internal process. The guidelines for the bank for validation of submission made by the Exporter are being issued separately through RBI.