The Directorate General of Foreign Trade (DGFT), Ministry of Commerce & Industry, Government of India, has issued Trade Notice No. 22/2025-26 dated January 16, 2026, introducing several amendments and clarifications to the Interest Subvention Support Scheme for Pre- and Post-Shipment Export Credit under the EXPORT PROMOTION MISSION (EPM) – NIRYAT PROTSAHAN.
Key Amendments Issued
Updated Eligibility Reference for Export Credit
The earlier reference to RBI’s Master Directions on export credit has been replaced. Export credit extended in accordance with RBI’s consolidated Directions on Credit Facilities, as amended from time to time, will now qualify for interest subvention support.
MSME Exporter–Centric Revisions
- Support will apply specifically to the interest cost, aligning with regulatory guidelines.
- MSME exporters who graduate out of their existing category due to increased investment or turnover will continue to remain eligible for three years from re-classification, as per MSME Notification S.O. 4926(E) dated 18.10.2022.
New Insertions for Operational Clarity
The following clauses have been newly inserted into the Handbook of Procedures (Draft HBP):
- Revised interest subvention rates will apply prospectively to credit facilities sanctioned after the effective notification date.
- Deemed exports under Chapter 7 of FTP 2023 will not be eligible for subvention.
- Subvention will be disallowed if the export credit account becomes non-performing before completion of the export cycle.
- Where exporters have multiple banking relationships, the responsibility of ensuring adherence to the annual ceiling on claims will lie solely with the exporter; excess claims will be recoverable.
Changes to Reimbursement Mechanism
Significant updates have been made to Appendix-A provisions:
- Monthly reimbursement to banks will be limited strictly to the actual interest subvention disbursed, based on verified claims submitted to RBI.
- Interest rate determination remains at the commercial discretion of banks; subvention will apply only to the interest actually borne by exporters.
- Banks must submit IEC-wise monthly claims online through the designated portal within 15 days; offline submissions will not be permitted.
Additional Clarifications
- For FY 2025-26, the full annual ceiling on interest subvention will apply without any pro-rata reduction, irrespective of sanction date or utilisation period.
- Only export credit sanctioned on or after 02 January 2026 (date of issuance of Trade Notice No. 20/2025-26) will qualify for interest subvention. Credit sanctioned prior to this date will remain ineligible.
- All other provisions in the earlier Trade Notice remain unchanged.
The Trade Notice can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/01/Trade-Notice-22-12Jan2026.pdf
