No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2008-09/115 · issued 01 Aug 2008 · ~1 min read
Quick answerRBI has closed the interest rate subvention scheme on rupee export credit effective September 30, 2008. Banks must notify exporter clients and adjust lending rates accordingly from that date.
What changed
The Government decided to close the interest rate subvention scheme on rupee export credit, which was earlier extended until March 31, 2009. RBI issued a directive under Sections 21 and 35A of the Banking Regulation Act, 1949, to end the scheme from September 30, 2008.
What it means for you
Banks can no longer offer subsidized export credit rates under this scheme after September 30, 2008. Exporters will face higher borrowing costs, and banks must revise their interest rate schedules for export credit accordingly.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Notify all exporter clients covered under the scheme about the closure effective September 30, 2008.
Update internal systems and loan documentation to remove subvention benefits from October 1, 2008.
Communicate revised interest rates for rupee export credit to branches and customers.
Ensure compliance with the directive issued under Sections 21 and 35A of the Banking Regulation Act, 1949.
Who it affects
All scheduled commercial banks (excluding RRBs), Exporters availing rupee export credit under the subvention scheme
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
When does the subvention scheme close?
The scheme closes with effect from September 30, 2008. Banks must stop offering subvention benefits from October 1, 2008.
What should banks do to comply?
Banks must inform their exporter clients about the closure and adjust interest rates on rupee export credit accordingly. The directive is issued under Sections 21 and 35A of the Banking Regulation Act, 1949.
Does this affect all export credit?
This closure applies only to the interest rate subvention scheme on rupee export credit. Other export credit facilities may continue as per existing instructions.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
RBI’s words: “interest subvention on export credit has been extended by one more year from April 1, 2008 till March 31, 2009”
📜 Read the original circular — full text as issued by RBI
RBI/2008-09/115
DBOD.Dir.(Exp).BC.No.28/04.02.01/2008- 09
August 1, 2008
All Scheduled Commercial Banks
(excluding RRBs)
Dear Sir,
Rupee Export Credit Interest Rates
Please refer to our circular DBOD.Dir.(Exp.)BC.No.73/04.02.01/2007-08 dated April 25, 2008 on the captioned subject advising that the interest rate subvention on export credit is extended for one more year from April 01, 2008 to March 31,2009.
2. Now the Government has decided to bring this Scheme to a close with effect from September 30, 2008. Accordingly, the extant instructions relating to interest rates subvention on rupee export credit contained in the aforementioned circular dated April 25, 2008 would stand amended and the scheme will be brought to a close with effect from September 30, 2008. You are requested to bring this to the notice of your exporter clients covered under the scheme so that the exporters get adequate time to make necessary adjustments.
3. A directive No. DBOD.Dir.(Exp.)BC.No.27/04.02.01/2007-08 dated August 1, 2008 issued in this regard is enclosed.
Yours faithfully,
(P.Vijaya Bhaskar)
Chief General Manager
DBOD .Dir.(Exp).BC.No.27/04.02.01/2008-09
August 1, 2008
Interest Rates on Advances
In exercise of the powers conferred by Sections 21 and 35 A of the Banking Regulation Act, 1949, the Reserve Bank of India, being satisfied that it is necessary and expedient in the public interest so to do, in continuation of directive DBOD.Dir.(Exp).BC.No.72/04.02.01/2007-08 dated April 24, 2008 hereby directs that interest rates subvention scheme on export credit would be brought to a close with effect from September 30,2008.
(Anand Sinha)
Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/115 · issued 01 Aug 2008. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4394&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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