New Delhi, Jul 2 (KNN) The Apparel Export Promotion Council (AEPC) welcomed the Reserve Bank of India’s (RBI) decision to extend the Interest Equalisation Scheme (IES) for Pre and Post Shipment Rupee Export Credit for another three months up to 30 September 2021.

Commenting on the RBI’s decision, AEPC Chairman Dr A Sakthivel said, “I thank the Hon’ble Finance Minister, Hon’ble Commerce Minister and RBI Governor for accepting our request to further extend the interest subvention scheme as the MSME sector is still struggling from lack of affordable working capital.”

“It is a good move by the government. The interest subvention scheme will help apparel exporters to reduce their cost of capital in these difficult times and thereby make them more competitive in international markets,” the Chairman added.

The Council has been updating the government about the needs and concerns of the apparel exporters, maximum of which are in the MSME segment, and extension of the IES export credit was one of them.

Earlier on Thursday, the RBI issued a circular communicating about the three-month extension of the IES on Pre and Post Shipment Rupee Export Credit. The move will be beneficial for those exporters who have rupee account for pre and post shipment credit.