Interest Subvention on Rupee Export Credit for UCBs Extended
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/367 · issued 11 Jan 2011 · ~2 min read
Quick answerRBI extends 2% interest subvention on pre-shipment (up to 270 days) and post-shipment (up to 180 days) rupee export credit for specified sectors from April 1, 2010 to March 31, 2011. UCBs must claim reimbursement quarterly with auditor certificate.
What changed
The earlier subvention scheme that expired on March 31, 2010 has been extended for another year. The new circular covers the period April 1, 2010 to March 31, 2011 and specifies the same eligible sectors and sub-sectors as before.
What it means for you
UCBs can now offer export credit at 2% below their normal lending rates to eligible exporters in specified sectors and claim the subvention from RBI. This reduces the interest burden on exporters and encourages export financing by UCBs. Banks must maintain proper documentation and submit quarterly claims with auditor certification to get reimbursed.
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
Identify eligible exporters in the specified sectors (handicrafts, carpets, handlooms, SMEs, leather, jute, engineering goods, textiles) and offer them export credit at 2% below normal rates.
Ensure pre-shipment credit does not exceed 270 days and post-shipment credit does not exceed 180 days; subvention applies only up to these limits.
Submit quarterly claims to RBI's Urban Banks Department, Central Office, Mumbai, starting from quarter ended June 30, 2010, using the format in Annex III.
Attach an auditor's certificate with each claim certifying the subvention amount is correct; no settlement without it.
Round off subvention amounts to the nearest rupee as per the annex instructions.
Who it affects
Scheduled Primary (Urban) Co-operative Banks holding AD Category I licence, Exporters in specified sectors (handicrafts, carpets, handlooms, SMEs, leather, jute, engineering goods, textiles)
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the interest subvention rate and period?
The subvention is 2% on rupee export credit for pre-shipment up to 270 days and post-shipment up to 180 days, effective from April 1, 2010 to March 31, 2011.
How do UCBs claim reimbursement?
Submit quarterly claims to RBI's Urban Banks Department, Central Office, Mumbai, using the format in Annex III, along with an auditor's certificate certifying the subvention amount.
Which sectors are eligible for this subvention?
Handicrafts, carpets, handlooms, SMEs (as defined in Annex I), leather and leather manufactures, jute manufacturing, engineering goods, and textiles (with specified sub-sectors).
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/367
UBD.BPD.(PCB) Cir. No 5/13.05.000/2010-11
January 11, 2011
Chief Executive Officer
Scheduled Primary (Urban) Co-operative Banks
(holding AD Category I licence)
Dear Sir / Madam,
Interest Rates on Rupee Export Credit - UCBs
Please refer to circular UBD.CO.BPD.Cir.No.1/13.05.000/2009-10 dated September 16, 2009 extending the interest subvention on rupee export credit to specified export sectors till March 31, 2010.
2. It has been decided to extend interest subvention of 2% on pre-shipment rupee export credit upto 270 days and post shipment rupee export credit upto 180 days on the specified export sectors / sub-sectors with effect from April 1, 2010 to March 31, 2011.
Specified Sectors / Sub-sectors:
(i) Handicrafts
(ii) Carpets
(iii) Handlooms
(iv) Small and Medium Enterprises (SME) (as defined in Annex I )
(v) Leather and Leather Manufactures (specified sub-sectors only)
(vi) Jute Manufacturing including Floor Covering (specified sub-sectors only)
(vii) Engineering Goods (specified sub-sectors only)
(viii) Textiles (specified sub-sectors only)
Details of specified sub-sectors are furnished in Annex II .
3. A Directive No.UBD.BPD.Dir.(Exp).No.2/13.05.000/2010-11 dated December 28, 2010, issued in this regard, is enclosed .
4. Claims for re-imbursement of subvention amount may be submitted to the Chief General Manager-in-Charge, Urban Banks Department, Reserve Bank of India, Central Office, Garment House, Worli, Mumbai - 400 018 on a quarterly basis starting from quarter ended June 30, 2010 in the format as per Annex III . The amount of subvention will be calculated on the amount of export credit from the date of disbursement up to the date of repayment or up to the date beyond which the outstanding export credit becomes overdue i.e. for pre-shipment credit up to 270 days and post-shipment credit up to 180 days, whichever is earlier. The claims should be accompanied by an Auditor's Certificate certifying that the claim for subvention of Rs ……………. for the period.......... (specify the quarter) is true and correct. Settlement of the claim will be done only on receipt of this certificate.
Yours faithfully
(Uma Shankar)
Chief General Manager
Annex - I
Definition of SME
Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below :
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/367 · issued 11 Jan 2011. 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=6214&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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