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Informist, Friday, Aug. 7, 2026

MUMBAI – The government has formally accorded the Export-Import Bank of India as the implementing agency for the interest subvention support for pre- and post-shipment export credit under Export Promotion Mission, with effect from Apr. 1. Earlier, the Reserve Bank of India was the implementing agency for the scheme 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 to the Export-Import Bank of India with effect from 1st April 2026," the Directorate General of Foreign Trade said in a press note Friday. 

EXIM Bank will serve as the Implementing Agency for all operationalizations, portal management, verification, and claim settlement workflows from Apr. 1 onwards, it said. However, any supplementary or additional claims from participating lending banks for Jan-Mar will continue to be processed by the RBI. 

Export credit will continue to be sanctioned and disbursed by lending institutions as per applicable consolidated directions on credit facilities by the RBI. "The interest subvention shall be passed on upfront to the eligible MSME (micro, small and medium enterprises) 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," it said.

Further, following the change, 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. Reimbursement to banks will be made on a monthly basis, same as earlier, 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.

On Jan. 2, the Directorate General of Foreign Trade launched the interest subvention for pre- and post- shipment export credit intervention under the Export Promotion Mission to facilitate improved access to pre- and post-shipment rupee export credit for micro, small and medium enterprises exporters by reducing the cost of such credit and provide rules-based and transparent interest-relief mechanism aimed at enhancing liquidity for micro, small and medium enterprises exporters and enabling them to meet working-capital requirements efficiently. End

Reported by Pratiksha

Edited by Akul Nishant Akhoury

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