Interest Subvention implementation from RBI to EXIM Bank
DGFT Shifts Interest Subvention Implementation from RBI to EXIM Bank – Trade Notice No. 17/2026-27
The Directorate General of Foreign Trade (DGFT) has announced a change in the implementing agency for the Interest Subvention Support on Pre- and Post-Shipment Export Credit under the Export Promotion Mission (EPM) – Niryat Protsahan.
The change has been notified through Trade Notice No. 17/2026-27 dated 7 August 2026 and is effective retrospectively from 1 April 2026.
EXIM Bank to Become the Implementing Agency
The interest subvention scheme was initially implemented through the Reserve Bank of India (RBI) on a pilot basis.
Following the decision taken at the 4th Steering Committee meeting of the Interest Subvention Scheme, the Government has approved the transfer of implementation responsibilities from RBI to the Export-Import Bank of India (EXIM Bank).
Accordingly, EXIM Bank will act as the implementing agency from 1 April 2026 onwards.
What Has Changed?
From 1 April 2026, EXIM Bank will handle the key operational aspects of the interest subvention framework, including:
- Scheme operationalisation;
- Portal-related activities;
- Verification of claims; and
- Settlement and reimbursement of eligible claims.
However, a specific arrangement has been retained for certain earlier claims.
Treatment of January–March 2026 Claims
Any supplementary or additional claims submitted by participating lending banks relating to the quarter ending January–March 2026 will continue to be processed by RBI.
Therefore, the transition does not shift such legacy supplementary claims to EXIM Bank.
Changes in the Interest Subvention Framework
DGFT has accordingly modified the relevant provisions of the Handbook of Procedures and Appendix-A that earlier referred to RBI as the agency responsible for reimbursement and claim processing.
1. Reimbursement to Be Claimed from EXIM Bank
Lending institutions will continue to sanction and disburse export credit in accordance with the applicable RBI directions.
The eligible interest subvention will continue to be provided upfront to the qualifying MSME exporter by the lending institution.
The major change is that the lending institution will now submit its reimbursement claim to EXIM Bank instead of RBI.
2. Monthly Reimbursement Claims
Banks must continue to pass on the applicable interest subvention benefit in full to eligible exporters.
The reimbursement claim submitted by the bank must be supported by the required external auditor certification.
EXIM Bank will process the reimbursement based on the verified claims and the actual interest subvention benefit provided to eligible exporters.
3. Monthly Reporting
The responsibility for submitting the prescribed monthly online report containing bank-wise reimbursement claim information has also shifted from RBI to EXIM Bank.
EXIM Bank will provide the required information in the format prescribed under the scheme.
4. Verification of IEC-Wise Claims
EXIM Bank will examine claims submitted by lending institutions to ensure that the benefit claimed against an individual IEC does not exceed the applicable annual subvention limit.
After completing the verification, EXIM Bank will approve the eligible claims and submit the consolidated funding requirement to DGFT through the designated portal.
What Remains Unchanged?
The transition of the implementing agency does not alter the other operational conditions of the interest subvention scheme.
The provisions contained in the earlier Trade Notices, including Trade Notice No. 20/2025-26 and subsequent amendments, will continue to apply except to the extent specifically modified by the latest notification.
Export credit will continue to be sanctioned and disbursed by participating lending institutions in accordance with the applicable RBI directions.
Key Changes at a Glance
| Particulars | Earlier Arrangement | Revised Arrangement |
|---|---|---|
| Implementing Agency | RBI | EXIM Bank |
| Effective date | — | 1 April 2026 |
| Interest subvention passed to exporter | Upfront by lending bank | Upfront by lending bank |
| Reimbursement claim by banks | RBI | EXIM Bank |
| Claim verification | RBI | EXIM Bank |
| Monthly bank-wise reporting | RBI | EXIM Bank |
| IEC-wise annual ceiling verification | RBI | EXIM Bank |
| Jan–Mar 2026 supplementary/additional claims | RBI | Continue with RBI |
Impact on MSME Exporters
For eligible MSME exporters, the core benefit mechanism remains unchanged. The interest subvention is still required to be passed on upfront by the lending institution.
The primary change is institutional and administrative, with EXIM Bank taking over the implementation, verification and reimbursement functions from RBI from 1 April 2026.
In Brief
DGFT has transferred the implementation of the Interest Subvention Support for Pre- and Post-Shipment Export Credit under EPM – Niryat Protsahan from RBI to EXIM Bank with effect from 1 April 2026.
Lending banks will now submit eligible reimbursement claims to EXIM Bank, which will verify the claims, ensure compliance with the applicable IEC-wise ceiling and process the reimbursement through the prescribed mechanism.
However, supplementary/additional claims relating to January–March 2026 will continue to be handled by RBI. All other provisions of the existing scheme remain unchanged unless specifically modified.
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