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Informist, Monday, Jan. 19, 2026

 

MUMBAI – The Reserve Bank of India on Monday directed banks and other eligible lending institutions to extend interest subvention benefits on pre- and post-shipment export credit under the government's export promotion mission, following the launch of the scheme on a pilot basis. 

 

In a circular issued to scheduled commercial banks, co-operative banks and all-India financial institutions, the RBI said the operational framework for the interest subvention scheme has been notified by the Directorate General of Foreign Trade through trade notices dated Jan. 2 and Jan. 16.

 

Under the scheme, eligible lenders are required to provide interest subvention to qualifying exporters strictly in line with the provisions laid down by the government and subject to existing regulatory instructions issued by the central bank. "The eligible lending institutions shall extend the benefit of interest subvention to eligible exporters strictly in accordance with the provisions of the Scheme," the RBI said, adding that lenders must ensure full compliance with extant regulatory norms while implementing the scheme.

 

The RBI also cautioned banks to ensure that the benefit is provided only on eligible export credit. Lenders have been asked to submit claims in line with the operational instructions and procedures prescribed under the scheme from time to time.

 

The RBI also said banks should put in place necessary internal checks to prevent misuse of the scheme and ensure accurate reporting of claims. Any deviation from the prescribed norms could invite supervisory scrutiny, it added. The scheme is being implemented on a pilot basis, and its continuation or expansion is expected to be reviewed based on uptake and effectiveness in supporting export growth.  End

 

Reported by Kabir Sharma

Edited by Vandana Hingorani

 

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