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.
What you must do
- 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
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.