India’s commerce ministry transfers responsibility for the export credit interest subvention scheme from the Reserve Bank of India to the Export-Import Bank of India, aiming to enhance efficiency in supporting exporters amid operational reforms.
India’s commerce ministry has shifted responsibility for its export credit interest subvention programme from the Reserve Bank of India to the Export-Import Bank of India, formalising a change intended to streamline the administration of support for exporters. The Directorate General of Foreign Trade said the move follows a steering committee decision and that Exim Bank will now handle portal management, verification and claim settlement for the scheme from April 1, 2026, while the RBI will continue to process any supplementary claims linked to the January-March quarter during the handover. The arrangement sits within the wider Export Promotion Mission, under which the government is using interest subvention to lower borrowing costs for pre-shipment and post-shipment export credit.
The scheme, called Niryat Prothsahan, was launched earlier this year as a pilot and was built around the idea of easing liquidity pressures for exporters, especially those financing orders before shipment and settling working capital after goods leave India. Business Standard reported in January that the RBI had instructed lending institutions to extend the benefit in line with the scheme’s terms and its own regulatory framework, with banks required to submit claims through the prescribed process.
Subsequent DGFT amendments published in March and May tightened and clarified the rules around eligibility and operations. According to those updates, the framework was aligned more closely with RBI norms, with stricter conditions on when support can be claimed and clearer treatment of accounts that turn non-performing. The revisions also addressed operational issues raised by exporters and lenders, including the use of unique identification numbers and the handling of multiple lending institutions.
The transition to Exim Bank marks the next stage in a programme the government says is meant to improve export competitiveness by making credit cheaper and more predictable. While the RBI remains part of the process for legacy claims, the operational centre of gravity is now moving to the state-owned export lender, which will oversee the day-to-day mechanics of the scheme going forward.
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