Interest Subvention Scheme Implementation Shifted
to EXIM Bank from RBI from 1 April 2026
·
Trade Notice Issued: DGFT
issued Trade Notice No. 17/2026-27 dated 7 August 2026 regarding the
transition of the Implementing Agency for the Interest Subvention
Support for Pre- and Post-Shipment Export Credit under the Export Promotion
Mission (EPM) – Niryat Protsahan.
·
Implementing Agency Changed: The
implementation of the Interest Subvention Scheme has been shifted from the Reserve
Bank of India (RBI) to the Export-Import Bank of India (EXIM Bank).
·
Effective Date: The
institutional transition is effective from 1 April 2026, following the
decision taken in the 4th Steering Committee meeting on the scheme.
·
EXIM Bank's Responsibilities: From 1
April 2026, EXIM Bank will be responsible for:
o
Operational implementation of the
scheme.
o
Portal management.
o
Verification of claims.
o
Settlement of reimbursement
claims.
·
Legacy Claims: Any
supplementary or additional claims relating to the January–March 2026 quarter
will continue to be processed by the RBI.
·
Reimbursement Process Revised: Lending
institutions will continue to:
o
Extend export credit as per RBI's
credit directions.
o
Pass the interest subvention
benefit upfront to eligible MSME exporters.
o
Submit reimbursement claims to EXIM
Bank instead of RBI.
·
Changes in Appendix-A:
o
Banks will submit externally
audited reimbursement claims to EXIM Bank.
o
Monthly reimbursements will be
made by EXIM Bank based on verified claims.
o
EXIM Bank will submit monthly
bank-wise reimbursement reports online.
·
Claim Verification: EXIM
Bank will verify IEC-wise claims, ensure compliance with the prescribed annual
subvention ceiling, and submit consolidated fund claims to DGFT through the
designated portal.
·
No Other Changes: All
other operational provisions under Trade Notice No. 20/2025-26 and
subsequent related Trade Notices remain unchanged.
[DGFT Trade Notice No.
17/2026-27 dated 7 August 2026]
Subject: Institutional Transition of Implementing Agency
from the Reserve
Bank of India (RBI) to the Export-Import Bank of India (EXIM Bank) for the Interest Subvention
Support for Pre- and Post-Shipment Export Credit under Export Promotion
Mission (EPM) – Niryat Prothsahan.
In reference
to the guidelines for Interest
Subvention Support for Pre- and Post- Shipment
Export Credit under the Export
Promotion Mission (EPM) issued vide Trade Notice No. 20/2025-26 dated
02.01.2026, Trade Notice No. 22/2025-26 dated 16.01.2026, Trade Notice No. 33/2025-26 dated 20.03.2026, Trade Notice
No. 01/2026-27 dated 20.04.2026, Trade Notice No. 03/2026-27
dated 13.05.2026 and Trade Notice
No. 13/2026-27 dated 14.07.2026.
2. With respect to Para 2 of the Trade Notice 20/2025-26, the Interest Subvention scheme was initially
operationalized through the Reserve Bank of India (RBI) on a pilot basis. Following
institutional transition decision
taken during the 4th Steering
Committee meeting on the Interest
Subvention Scheme, approval
has been formally
accorded for the transition of the Implementing Agency from the Reserve Bank of India (RBI) to the Export-Import Bank of India (EXIM Bank) with effect
from 1st April 2026.
3. To ensure a smooth transition, the following operational modalities may be noted:
i.
Effective Date of Framework
Transition: EXIM Bank shall serve as the Implementing Agency
for all operationalizations, portal management, verification, and claim settlement workflows
from 1st April 2026 onwards.
ii. Settlement of Legacy
Claims (Jan–March 2026 Quarter): Any supplementary/additional claims
from participating lending
banks for the quarter ending
January to March
2026 shall continue
to be processed by the Reserve Bank of India
(RBI).
4.
Consequently, the implementation framework and guidelines originally detailed in Annexure-I (Provisions for Handbook of Procedures) and
Appendix-A of Trade Notice No. 20/2025-26 modifications below shall be part of the Interest
Subvention Support for Pre- and Post-Shipment Export
Credit under Export
Promotion Mission (EPM) -
Niryat Protsahan as issued or amended earlier through subsequent trade notices:
|
Guideline Section / Para |
Erstwhile Provision (RBI
Framework - Trade
Notice 20/2025-26) |
Modified
Provision (EXIM Bank
Framework Effective 01.04.2026) |
|
HBP Chapter X |
Export credit
shall continue to be sanctioned and disbursed by lending institutions as per applicable Reserve Bank of India’s Consolidated Directions on Credit
Facilities. The interest subvention shall be passed on upfront to the
eligible MSME exporter by the lending institution, and the corresponding reimbursement shall be claimed by the lending
institution from the Reserve Bank
of India (RBI)
as per operational procedures notified
from time to time. |
Export credit
shall continue to be sanctioned and disbursed by lending institutions as per applicable Reserve Bank of India’s
Consolidated Directions on Credit Facilities. The interest subvention shall be passed on upfront to the eligible
MSME exporter by the lending institution, and the corresponding reimbursement shall
be claimed by the lending institution from the EXIM Bank as per operational
procedures
notified from time
to time. |
|
Appendix-A |
e. Banks are
required to completely pass on the benefit of interest subvention, as applicable, to the eligible
exporters upfront and submit the
claims to RBI for reimbursement, duly certified by the external auditor. f. Reimbursement to banks shall
be made on a monthly basis, limited to the actual amount of interest subvention extended to eligible exporters, as reflected in the verified
claims submitted by banks to the Reserve Bank of India. h. RBI shall submit a monthly report
online indicating bank- wise reimbursement claims, as per the format(s) prescribed. |
e. Banks are
required to completely pass on the
benefit of interest subvention, as applicable, to the
eligible exporters upfront and submit the claims to EXIM Bank
for reimbursement, duly certified by the external auditor. f. Reimbursement to banks shall
be made on a monthly basis, limited to the actual
amount of interest subvention extended to eligible exporters, as reflected in the verified claims submitted by banks
to the EXIM
Bank. h. EXIM Bank shall submit
a monthly report
online indicating bank-wise reimbursement claims, as per the format(s) prescribed. |
|
Appendix-A
(Credit Sanction and Claims) |
RBI shall
scrutinize each claim
to ensure that
the IEC-specific claim
submitted by the
bank does not
exceed the prescribed ceiling
of the annual subvention amount per IEC.
Upon verification, RBI
shall approve and
submit the consolidated fund claims to DGFT through
the designated portal. |
EXIM Bank
shall scrutinize each
claim to ensure
that the IEC-specific claim
submitted by the bank does
not exceed the prescribed ceiling of the annual subvention amount per
IEC. Upon verification, EXIM Bank shall
approve and submit
the consolidated fund
claims to DGFT
through the designated portal. |
5. All other operational provisions prescribed under Trade Notice No. 20/2025- 26 and subsequent Trade Notices shall remain unchanged.
This Trade Notice is issued with the approval of the Competent Authority.
[Issued from File No. 01/02/89/AM-26/EPM-Part(3)]