The Directorate General of Foreign Trade (DGFT), Department of Commerce, Ministry of Commerce & Industry, has notified the institutional transition of the implementing agency for Interest Subvention Support for Pre- and Post-Shipment Export Credit under the Export Promotion Mission (EPM) – Niryat Prothsahan from the Reserve Bank of India (RBI) to the Export-Import Bank of India (EXIM Bank). The transition has been notified through Trade Notice No. 17/2026-27 dated 7 August 2026.
The Interest Subvention scheme was initially operationalised through the Reserve Bank of India on a pilot basis under the framework prescribed through Trade Notice No. 20/2025-26 dated 2 January 2026 and subsequently amended through various Trade Notices. Following the institutional transition decision taken during the 4th Steering Committee meeting on the Interest Subvention Scheme, formal approval has been accorded for EXIM Bank to replace RBI as the Implementing Agency with effect from 1 April 2026.
Under the revised framework, EXIM Bank will serve as the Implementing Agency for all operationalisation, portal management, verification and claim-settlement workflows from 1 April 2026 onwards. The transition is intended to provide continuity in the administration of the interest subvention support mechanism while placing responsibility for operational implementation with EXIM Bank.
As part of the transition arrangements, supplementary or additional claims submitted by participating lending banks for the January–March 2026 quarter will continue to be processed by RBI. This provision has been incorporated to facilitate orderly settlement of legacy claims pertaining to the period prior to the transition of the implementing agency.
The revised framework does not alter the role of lending institutions in sanctioning and disbursing export credit. Export credit will continue to be sanctioned and disbursed by lending institutions in accordance with the applicable Reserve Bank of India Consolidated Directions on Credit Facilities. The benefit of interest subvention will continue to be passed on upfront to eligible MSME exporters by the lending institution. However, under the modified framework, the corresponding reimbursement will now be claimed by lending institutions from EXIM Bank instead of RBI, as per the operational procedures prescribed from time to time.
The Trade Notice further provides that participating banks will continue to be required to fully pass on the applicable interest subvention benefit to eligible exporters upfront. Claims for reimbursement, duly certified by the external auditor, will henceforth be submitted to EXIM Bank. Reimbursements to banks will continue to be made on a monthly basis, limited to the actual amount of interest subvention extended to eligible exporters and reflected in verified claims.
As part of the modified reporting mechanism, EXIM Bank will submit a monthly online report indicating bank-wise reimbursement claims in the prescribed format. This responsibility was earlier assigned to RBI under the original implementation framework.
EXIM Bank will also be responsible for scrutinising each claim to ensure that the IEC-specific claim submitted by a bank does not exceed the prescribed ceiling of the annual subvention amount per IEC. Following verification, EXIM Bank will approve and submit the consolidated fund claims to DGFT through the designated portal. This claim-verification and submission function was previously performed by RBI.
The institutional transition accordingly modifies the relevant provisions of Annexure-I relating to the Handbook of Procedures and Appendix-A of Trade Notice No. 20/2025-26, along with the subsequent amendments issued under the Interest Subvention Support framework of the Export Promotion Mission. The core scheme architecture relating to the extension of interest subvention support to eligible exporters otherwise continues to operate under the existing framework.
DGFT has clarified that all other operational provisions prescribed under Trade Notice No. 20/2025-26 and subsequent Trade Notices will remain unchanged. The present Trade Notice has been issued with the approval of the Competent Authority.
The transition to EXIM Bank provides a revised institutional mechanism for administration of the interest subvention component under EPM – Niryat Prothsahan, while ensuring continuity in credit delivery and reimbursement arrangements for participating lending institutions and eligible exporters.
The Trade Notice can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/08/TN-17-2026-27-Interest-subvention.pdf
