RBI Issues Guidelines on Interest Subvention for Export Credit under Niryat Protsahan

Current Context: On January 19, 2026, the Reserve Bank of India (RBI) issued Circular RBI/2025-26/195 with operational guidelines for the Interest Subvention Scheme under the Export Promotion Mission (EPM) – Niryat Protsahan.

• The scheme, launched on a pilot basis, replaces the earlier Interest Equalization Scheme (IES).
• Exporters receive 2.75% interest subvention per annum on Pre-shipment and Post-shipment Rupee Export Credit.
• An annual cap of ₹50 lakh per Importer Exporter Code (IEC) applies for FY 2025–26, with no pro-rata adjustment.
• Eligible exporters must be MSMEs with valid IEC and Udyam Registration Number (URN); benefit applies only to a Positive List of products (~75% tariff lines).
• Exclusions: Deemed Exports and accounts turning Non-Performing Assets (NPA) before cycle completion.
• Effective for export credit sanctioned on/after January 2, 2026; banks must pass the benefit upfront and file digital reimbursement claims monthly to RBI.

Question:

Q.1 As per Reserve Bank of India (RBI) norms, what is the maximum annual interest subvention cap per Importer Exporter Code (IEC) for FY 2025–26?
a) ₹25 lakh
b) ₹40 lakh
c) ₹50 lakh
d) ₹75 lakh

Answer: c) An annual cap of ₹50 lakh per Importer Exporter Code (IEC) applies for FY 2025–26, with no pro-rata adjustment.