DGFT Shifts Interest Subvention to EXIM Bank
The Directorate General of Foreign Trade (DGFT) has announced an important institutional change in the Interest Subvention Support for Pre- and Post-Shipment Export Credit under the Export Promotion Mission (EPM) – Niryat Protsahan.
Through Trade Notice No. 17/2026-27 dated 7 August 2026, DGFT has formally transitioned the implementing agency from the Reserve Bank of India (RBI) to the Export-Import Bank of India (EXIM Bank) with effect from 1 April 2026.
The change affects operationalisation, portal management, verification and claim settlement workflows under the interest subvention framework.
What Has Changed Under the DGFT Notice?
The interest subvention scheme was initially operationalised through RBI on a pilot basis. Following the decision taken during the 4th Steering Committee meeting, EXIM Bank has now been approved as the implementing agency from 1 April 2026.
EXIM Bank Becomes the Implementing Agency
From 1 April 2026 onwards, EXIM Bank will handle:
- Operationalisation of the framework
- Portal management
- Verification of claims
- Claim settlement workflows
However, the transition does not transfer every pending matter from RBI immediately.
Legacy Claims Remain With RBI
Supplementary or additional claims submitted by participating lending banks for the January–March 2026 quarter will continue to be processed by RBI.
This provides a defined mechanism for handling claims relating to the period before the institutional transition.
Changes in the Interest Subvention Claim Process
The underlying export credit process remains connected to the applicable RBI Consolidated Directions on Credit Facilities. Lending institutions will continue to sanction and disburse export credit under the applicable framework.
The key operational change is where banks submit their reimbursement claims.
Reimbursement Claims Will Go to EXIM Bank
Under the modified framework, eligible MSME exporters will continue to receive the applicable interest subvention benefit upfront from the lending institution.
The lending institution will then submit the corresponding reimbursement claim to EXIM Bank, replacing RBI as the reimbursement agency.
Note:
The Trade Notice changes the implementing and reimbursement agency. It does not state that the underlying export credit sanctioning process has moved away from the applicable RBI credit directions.
External Auditor Certification Continues
Banks are required to completely pass on the applicable interest subvention benefit to eligible exporters upfront.
Claims submitted by banks to EXIM Bank must continue to be duly certified by the external auditor.
Therefore, the institutional transition does not remove the existing certification requirement.
Monthly Reimbursement Process
Reimbursement to banks will continue on a monthly basis.
The reimbursement will remain limited to the actual amount of interest subvention extended to eligible exporters, based on verified claims submitted by the banks. The difference is that these verified claims will now be submitted to EXIM Bank instead of RBI.
EXIM Bank to Handle Claim Verification
Another important change concerns claim scrutiny.
Previously, RBI was responsible for scrutinising IEC-specific claims to ensure that the claim submitted by a bank did not exceed the prescribed annual subvention ceiling per IEC.
Under the modified framework, EXIM Bank will perform this verification. After verification, EXIM Bank will approve and submit consolidated fund claims to DGFT through the designated portal.
Monthly Reporting Also Shifts
The monthly online reporting requirement also moves from RBI to EXIM Bank.
EXIM Bank will submit bank-wise reimbursement claim reports online in the prescribed format.
What Remains Unchanged?
The DGFT has specifically clarified that all other operational provisions prescribed under Trade Notice No. 20/2025-26 and subsequent Trade Notices will remain unchanged.
This means the latest Trade Notice primarily addresses the institutional transition and related operational responsibilities, rather than replacing the entire interest subvention framework.
What Exporters and Lending Banks Should Note
For stakeholders involved in the EPM – Niryat Protsahan interest subvention framework, the key points are:
- EXIM Bank is the implementing agency from 1 April 2026.
- Banks continue to sanction and disburse export credit under applicable RBI credit directions.
- Eligible MSME exporters continue to receive the applicable subvention upfront through lending institutions.
- Reimbursement claims are now submitted to EXIM Bank.
- External auditor certification of claims continues.
- Monthly reimbursement remains based on the actual interest subvention extended.
- EXIM Bank will scrutinise IEC-specific claims against the prescribed annual ceiling.
- January–March 2026 supplementary/additional claims remain with RBI.
- Other operational provisions under earlier Trade Notices remain unchanged
Conclusion
DGFT Trade Notice No. 17/2026-27 marks a significant institutional transition in the administration of Interest Subvention Support for Pre- and Post-Shipment Export Credit under EPM – Niryat Protsahan.
With EXIM Bank replacing RBI as the implementing agency from 1 April 2026, banks will now route reimbursement claims, verification and related reporting through EXIM Bank. At the same time, the treatment of legacy January–March 2026 claims remains with RBI, while other existing operational provisions continue unchanged.
For lending institutions and eligible MSME exporters, understanding this transition is important for ensuring that future claim and reimbursement processes are aligned with the revised framework.
Notification Reference:
DGFT
Trade Notice No. 17/2026-27
07/08/2026