RBI Extends 2% Export Credit Subvention by Six Months
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2008-09/419 · issued 25 Mar 2009 · ~1 min read
Quick answerRBI extends 2% interest subvention on rupee export credit for six more months, from April 1 to September 30, 2009, for the same sectors and terms as before.
What changed
The previous subvention, valid from December 1, 2008 to March 31, 2009, has been extended for an additional six months. The new period runs from April 1, 2009 to September 30, 2009, with no changes to eligible sectors or conditions.
What it means for you
Banks can continue offering concessional export credit rates with the 2% subvention, supporting exporters' cash flows during the global slowdown. This extension ensures stability for lenders in pricing export loans without altering existing operational guidelines.
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
Update internal systems to apply the 2% subvention on eligible rupee export credit from April 1 to September 30, 2009.
Communicate the extension to your export credit teams and ensure compliance with the same terms and conditions as the earlier period.
Monitor the subvention claims process to align with the new end date of September 30, 2009.
Who it affects
All scheduled commercial banks (excluding RRBs), Exporters in specified sectors receiving rupee export credit
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Which sectors are covered under this subvention extension?
The circular states the subvention applies to the same sectors as the previous directive, but does not list them explicitly. Refer to the earlier December 16, 2008 circular for sector details.
Do we need to submit any new documentation for this extension?
No new documentation is required beyond the existing terms and conditions. The directive simply continues the previous arrangement for the additional six-month period.
Is this subvention applicable to all export credit or only rupee-denominated?
The subvention is specifically for rupee export credit, as stated in the circular title and text. Foreign currency export credit is not covered.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
RBI’s words: “in continuation of directive DBOD.Dir.(Exp).BC.No.116/04.02.01/2008-09 dated March 25, 2009”
📜 Read the original circular — full text as issued by RBI
RBI/2008-09/419
DBOD.Dir.(Exp).BC.No. 117 /04.02.01/2008-09
March 25, 2009
All Scheduled Commercial Banks
(excluding RRBs)
Dear Sir,
Rupee Export Credit Interest Rates
Please refer to our circular DBOD. Dir.(Exp.)No.101/04.02.01/2008-09 dated December 16, 2008 on the captioned subject regarding provision of interest rate subvention to all scheduled commercial banks in respect of Rupee Export Credit to the specified categories of exporters, with effect from December 01, 2008 up to March 31, 2009.
2. It has been decided to extend interest subvention of 2% on export credit for a further period of six months i.e. from April 1, 2009 till September 30, 2009 to the same sectors and on the same terms and conditions.
3. A directive No. DBOD.DIR.(Exp.)BC.No.116/04.02.01/2008-09 dated March 25, 2009 issued in this regard is enclosed.
Yours faithfully,
(P.Vijaya Bhaskar)
Chief General Manager
Encl : as above
DBOD .Dir.(Exp).BC.No.116/04.02.01/2008-09
March 25, 2009
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.100/04.02.01/2008-09 dated December 16, 2008, hereby directs that interest subvention on export credit may be continued for a further period of six months i.e. from April 1, 2009 till September 30, 2009 to the same sectors and on the same terms and conditions.
(Anand Sinha)
Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/419 · issued 25 Mar 2009. 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=4901&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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