RBI Extends 2% Export Credit Subvention by Six Months
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2009-10/110 · issued 31 Jul 2009 · ~2 min read
Quick answerRBI extended the 2% interest subvention on rupee export credit for another six months, from October 1, 2009 to March 31, 2010, for the same sectors and terms as before. Banks must continue applying the subvention to eligible export credit during this period.
What changed
The earlier subvention period ending September 30, 2009 has been extended by six months to March 31, 2010. The 2% subvention rate, eligible sectors, and all other terms remain unchanged from the previous directive.
What it means for you
Banks must continue to offer the 2% interest subvention on rupee export credit to specified exporter categories for the extended period. This ensures exporters benefit from lower borrowing costs, and banks need to adjust their systems to apply the subvention for the additional six months without any change in compliance or reporting requirements.
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 October 1, 2009 to March 31, 2010.
Communicate the extension to all branches handling export credit to ensure consistent application.
Maintain records of subvention claims for the extended period as per existing guidelines.
Who it affects
All scheduled commercial banks (excluding RRBs) offering rupee export credit, Exporters in specified sectors eligible for the subvention
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Which exporters are eligible for this extended subvention?
The subvention applies to the same sectors and categories specified in the earlier circular dated March 25, 2009. The RBI document does not list the sectors, so banks should refer to that earlier circular for details.
Do we need to submit any new application for this extension?
No new application is required. The directive is automatic; banks must simply continue applying the 2% subvention on eligible credit for the extended period under the same terms.
What happens after March 31, 2010?
The circular covers only up to March 31, 2010. Any further extension would require a separate RBI directive. Banks should plan for the subvention to end on that date unless notified otherwise.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
RBI’s words: “Please refer to our circular DBOD.Dir.(Exp).BC.No.26 /04.02.001/2009-10 dated July 31, 2009.”
📜 Read the original circular — full text as issued by RBI
RBI/2009-10/110
DBOD.Dir.(Exp).BC.No.26 /04.02.001/2009-10
July 31, 2009
All Scheduled Commercial Banks
(excluding RRBs)
Dear Sir / Madam,
Rupee Export Credit Interest Rates
Please refer to our circular DBOD.Dir.(Exp).BC.No.117/04.02.01/2008-09 dated March 25, 2009 on the captioned subject regarding extension of interest rate subvention to all scheduled commercial banks in respect of Rupee Export Credit to the specified categories of exporters, with effect from April 1, 2009 upto September 30, 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 October 1, 2009 till March 31, 2010 to the same sectors and on the same terms and conditions.
3. A directive No.DBOD.DIR.(Exp.)BC.No.25/04.02.001/2009-10 dated July 31, 2009 issued in this regard is enclosed.
Yours faithfully,
(P.Vijaya Bhaskar)
Chief General Manager-in-Charge
Encl : as above
DBOD .Dir.(Exp).BC.No.25/04.02.001/2009-10
July 31, 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.116/04.02.01/2008-09 dated March 25, 2009, hereby directs that interest subvention on export credit may be continued for a further period of six months i.e. from October 1, 2009 to March 31, 2010 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/2009-10/110 · issued 31 Jul 2009. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 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=5193&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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