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Rupee Export Credit Interest Subvention Extended to Readymade Garments

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2009-10/182 · issued 12 Oct 2009 · ~1 min read
Quick answerRBI has included Readymade Garments under the 2% interest subvention scheme on rupee export credit, effective from December 1, 2008 to March 31, 2010, aligning them with Textiles. Banks must pass on benefits and submit revised claims.

What changed

The Government of India decided to add Readymade Garments to the existing interest subvention scheme for rupee export credit, alongside Textiles, with retrospective effect from December 1, 2008. This extends the 2% subvention benefit to this sector for the period up to March 31, 2010.

What it means for you

Banks must now extend the 2% interest subvention on pre- and post-shipment rupee export credit to exporters of Readymade Garments, covering the same period as Textiles. This will require lenders to adjust their systems to identify eligible exporters and process revised claims for the subvention from the Government.

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

Who it affects

All Scheduled Commercial Banks (excluding RRBs), Exporters in the Readymade Garments sector, Exporters in the Textiles sector

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the interest subvention rate under this scheme?

The scheme provides a 2% interest subvention on rupee export credit, as per the earlier circular dated December 16, 2008.

From which date is the inclusion of Readymade Garments effective?

The inclusion is effective from December 1, 2008, and applies until March 31, 2010.

Do banks need to submit any claims to RBI?

Yes, banks must submit revised claims for the subvention in the format specified in the December 16, 2008 circular.

📜 Read the original circular — full text as issued by RBI
RBI/2009-10/182 DBOD.Dir.(Exp).BC.No. 48/04.02.001/2009-10 October 12, 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.101/04.02.01/2008-09 dated December 16, 2008 wherein interest subvention of 2% was extended w.e.f. 01.12.2008 to 31.03.2009 on pre and post shipment rupee export credit for certain employment orientated export sectors. The scheme was, thereafter, extended for a further period upto 31.03.2010 vide our circular DBOD.Dir.(Exp).BC.No.26 /04.02.001/2009-10 dated July 31, 2009. The Government of India has now decided to include the Readymade Garments along with Textiles w.e.f. 01.12.2008 under the Rupee Export Credit Interest Rates Subvention scheme in vogue from 01.12.2008 to 31.03.2010. 2.  Banks may, therefore, pass on the benefit to all eligible exporters and submit their revised claims in the prescribed format as mentioned in our circular dated December 16, 2008. 3.  A directive No. DBOD.Dir.(Exp).BC.No.47/04.02.001/2009-10 dated October 12, 2009 issued in this regard is enclosed. Yours faithfully, (P.Vijaya Bhaskar) Chief General Manager - in -Charge DBOD.Dir.(Exp).BC.No.47/04.02.001/2009-10 October 12, 2009 Interest Rates on Rupee Export Credit 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 partial modification 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 extended to include Readymade Garments along with Textiles w.e.f. December 1, 2008 to March 31, 2010 on the same terms and conditions. (Anand Sinha) Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/182 · issued 12 Oct 2009. The plain-English explanation above is BankPulse’s own independent summary.
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