Date: 2026-01-16Category: Not ApplicableState: Union GovernmentCountry: India
Amendments to Guidelines for Interest Subvention Support for Pre- and Post Shipment Export Credit under EXPORT PROMOTION MISSION – NIRYAT PROTSAHAN – regarding
**Executive Summary**
This Trade Notice No. 22/2025-26, dated January 16, 2026, issues amendments and insertions to the guidelines for Interest Subvention Support for Pre- and Post-Shipment Export Credit under the EXPORT PROMOTION MISSION – NIRYAT PROTSAHAN. These changes aim to provide operational clarity and certainty. The amendments are effective for eligible export credit sanctioned on or after January 2, 2026.
**Key Points / Main Content**
* **Eligibility for Support:**
* Export credit extended by lending institutions should align with the Reserve Bank of India's consolidated Directions on Credit Facilities, as amended.
* Support is exclusively available to eligible MSME exporters financing export transactions, applying to the interest cost.
* **Interest Subvention:**
* Revised interest subvention rates apply only to export credit facilities sanctioned on or after the date of notification. Existing facilities are governed by the rate on the date of sanction.
* Interest subvention is inadmissible for deemed exports as defined under Chapter 7 of the Foreign Trade Policy (FTP) 2023.
* Interest subvention is inadmissible if the export credit account becomes non-performing prior to the completion of the eligible export cycle.
* Exporters graduating out of their existing MSME category during the financial year due to upward change in investment or turnover remain eligible for interest subvention support for three years from re-classification, subject to MSME Notification S.O. 4926(E) dated 18.10.2022 and other conditions.
* **Responsibilities and Procedures:**
* If an exporter uses export credit from multiple lending institutions, the exporter is solely responsible for ensuring that aggregate interest subvention claims stay within the prescribed annual ceiling.
* Reimbursement to banks is limited to the actual interest subvention amount extended to eligible exporters, per verified claims submitted to the Reserve Bank of India, and is made on a monthly basis.
* The determination of interest rates on export credit remains the commercial discretion of lending institutions.
* Banks must submit IEC-wise monthly interest subvention reimbursement claims online through the designated portal within 15 days after the end of each month. Manual or offline report submissions are not allowed.
* **Financial Year 2025-26:**
* The annual ceiling on interest subvention for FY 2025-26 applies in full, regardless of sanction date or duration of utilization.
**Impact Analysis**
**Stakeholder**: Lending Institutions
* **Impact**: Need to ensure compliance with RBI guidelines for credit facilities and implement revised subvention rates for new sanctions.
* **Action Required**: Update internal procedures and reporting mechanisms to reflect the amendments, and submit claims online as specified.
**Stakeholder**: MSME Exporters
* **Impact**: Changes in eligibility criteria, potential impact on subvention rates, and added responsibility for managing claims from multiple institutions.
* **Action Required**: Understand the revised guidelines, ensure eligibility, manage claims from multiple sources, and monitor export credit accounts to prevent them from becoming non-performing.
**Stakeholder**: Government (Ministry of Commerce & Industry/ DGFT)
* **Impact**: Oversee and administer the revised interest subvention scheme.
* **Action Required**: Monitor compliance, address queries from stakeholders, and ensure smooth implementation of the revised guidelines.
Key Entities Referenced
EXPORT PROMOTION MISSION – NIRYAT PROTSAHAN: The program under which interest subvention support for pre- and post-shipment export credit is being provided.
Reserve Bank of India's consolidated Directions on Credit Facilities: Regulatory document specifying guidelines for lending institutions regarding credit facilities.
Ministry of Commerce & Industry: The central government ministry primarily responsible for this Trade Notice and its policy direction.
Directorate General of Foreign Trade: The department within the Ministry of Commerce & Industry responsible for issuing the Trade Notice.
Foreign Trade Policy (FTP) 2023: Referenced policy document relevant to determining deemed exports.
Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Vanijya Bhawan, New Delhi
Trade Notice No. 22/2025-26
Dated: 16th January 2026
Subject: Amendments to Guidelines for Interest Subvention Support for Pre- and Post-
Shipment Export Credit under EXPORT PROMOTION MISSION – NIRYAT PROTSAHAN
– regarding
In continuation of Trade Notice No. 20/2025-26 dated January 02, 2026, the following
amendments and insertions are hereby issued for operational clarity and certainty. These shall
form part of the Interest Subvention Support for Pre- and Post-Shipment Export Credit under
EXPORT PROMOTION MISSION (EPM) - NIRYAT PROTSAHAN as issued earlier-
Para No. Existing Text Revised / Inserted Text
Draft HBP Export credit extended by Export credit extended by lending
Para X.1(b) lending institutions in institutions in accordance with the
accordance with RBI Master Reserve Bank of India’s consolidated
Directions on Pre- and Post- Directions on Credit Facilities, as
Shipment Export Credit shall amended from time to time, shall qualify
qualify for support under this for support under this component.
component.
Draft HBP The support shall be available The support shall be available exclusively
Para X.2(b) exclusively to eligible MSME to eligible MSME exporters for financing
exporters for financing export export transactions and shall apply to the
transactions and shall apply interest cost, in accordance with
only to the credit cost element, applicable financial and regulatory
in accordance with applicable guidelines.
financial and regulatory
guidelines.Inserted – Revised interest subvention rates, as
Draft HBP notified from time to time, shall be
Para X.3(e) applicable only to export credit facilities
sanctioned on or after the date of such
notification. Existing facilities shall
continue to be governed by the
subvention rate applicable on the date of
sanction.
Inserted – – Given Interest subvention shall not be
Draft HBP admissible in respect of deemed exports,
Para X.3(f) as defined under Chapter 7 of the Foreign
Trade Policy(FTP) 2023
Inserted – Interest subvention shall not be
Draft HBP admissible where the export credit
Para X.3(g) account turns non-performing prior to
completion of the eligible export cycle,
in accordance with applicable regulatory
norms.
Inserted – Exporters graduating out of their existing
Draft HBP MSME category during the financial year,
Para X.3(h) due to an upward change in investment or
turnover, shall continue to remain eligible
for interest subvention support for a
period of three years from the date of
such re-classification, in accordance with
Ministry of MSME Notification S.O.
4926(E) dated 18.10.2022, and subject to
fulfilment of all other prescribed
conditions.
Draft HBP – Where an exporter avails export credit
Para X.4(e) - from more than one lending institution, the
Inserted responsibility to ensure that aggregate
interest subvention claims remain within
the prescribed annual ceiling shall rest
solely with the beneficiary exporter.
Any excess claim identified shall berecoverable in accordance with
applicable provisions.
Draft Funds may be placed in Reimbursement to banks shall be made
Appendix-A advance with RBI for a on a monthly basis, limited to the actual
Para 2(f) requirement of one month and amount of interest subvention extended to
reimbursement would be made eligible exporters, as reflected in the
on a monthly basis through a verified claims submitted by banks to the
revolving fund system. Reserve Bank of India.
Draft The bank shall sanction export The determination of interest rates on
Appendix-A credit facilities at the prescribed export credit shall remain at the
Para 3(a) rate of interest, in accordance commercial discretion of lending
with the applicable interest institutions, in compliance with applicable
subvention rate and prevailing regulatory directions. Interest subvention
component guidelines. shall be extended on the interest cost
actually borne by the exporter, as per the
notified subvention rate under this
intervention.
Draft Bank shall submit IEC-wise Banks shall submit IEC-wise monthly
Appendix-A monthly reimbursement claims interest subvention reimbursement claims
Para 3(b) for interest subvention within 15 online through the designated portal
days from the end of each within fifteen (15) days from the end of
month on the portal. each month. All related reports, including
consolidated and bank-wise monthly
statements, shall be submitted online
through the portal, and no manual or
offline submission of reports shall be
permitted.
2. For FY 2025-26, the annual ceiling on interest subvention shall apply in full and shall not be
subject to pro-rata adjustment, irrespective of the date of sanction or duration of utilisation
during the financial year.
3. Interest subvention shall be admissible only in respect of eligible export credit sanctioned
on or after 02.01.2026, being the date of issuance of Trade Notice No. 20/2025-26. Export
Credit sanctioned prior to this date shall not be eligible.4. All other provisions of Trade Notice No. 20 dated 02.01.2026 shall remain unchanged. This
Trade Notice is issued with the approval of the Competent Authority.
B Kruti
Deputy Director General of Foreign Trade
[Issued from File No. 01/02/48/AM-26/EPM]