RBI Circular On Export Credit Interest Subsidy Under EPM Scheme 2026

Circular no. RBI/2025-26/195 DOR.STR.REC.393/04.02.001/2025-26 dated: 19.01.2026

1. Introduction: RBI Issues Export Credit Subsidy Circular for 2026

The Reserve Bank of India (RBI) has issued a circular dated 19 January 2026 to operationalise the Government of India’s pilot Export Promotion Mission (Niryat Prothsahan). The circular provides for interest subsidy on pre-shipment and post-shipment export credit to eligible exporters, with the objective of strengthening India’s export competitiveness.

2. Background: Export Promotion Mission (Niryat Prothsahan)

The Export Promotion Mission (EPM), also known as Niryat Prothsahan, is a targeted initiative aimed at easing credit costs for exporters. Under this pilot scheme, interest subsidy is extended on export credit facilities to reduce financial burden and improve liquidity for exporters engaged in eligible export activities.

3. Scope of RBI Circular and Applicability

As per Circular No. RBI/2025-26/195, RBI has directed all eligible banks and financial institutions to extend the interest subsidy strictly to qualifying exporters and eligible export credit only. The implementation of the scheme must align with RBI’s regulatory framework and operational guidelines issued under the banking and credit policy norms.

4. Compliance With DGFT Trade Notices

Banks and financial institutions are required to adhere to Trade Notices No. 20/2025-26 and 22/2025-26 issued by the Directorate General of Foreign Trade (DGFT). These trade notices define exporter eligibility, procedural requirements, and operational conditions for availing benefits under the EPM scheme.

5. Claim Process and Conclusion

Claims for interest subsidy under the EPM scheme must be submitted through the prescribed process and within the timelines specified by RBI and DGFT. Strict compliance with documentation, eligibility conditions, and regulatory instructions is mandatory. This RBI circular marks a significant step in supporting exporters through structured credit incentives while ensuring regulatory discipline in subsidy disbursement.

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