RBI Increased Interest Subsidy for MSME Sector Exporters 5%
From November 2, 2018, the Interest Equalization rates form Micro, Small and Medium Enterprises (MSME) exporters has increased from 3% to 5% under the MSME Interest Equalisation Scheme. This is applicable on the Pre and Post Shipment Rupee Export Credit by the Reserve Bank of India (RBI).
MSME Sectors included in this scheme are related to employment generation or labour intensive, such as handicrafts, glassware, apparels, automotive, processed food, etc. But, the scheme is not for merchant exporters.
On the NBFC, the RBI announced that the guidelines have been relaxed to encourage securitise eligible assets. Also, all participants will need to have a Legal Entity Identifier (LEI) code. LEI code is a 20-character code that is unique to every party participating in a financial transaction. This includes everyone undertaking transaction in the market, excluding individuals. This is expected to offer better financial data for risk management.