RBI widens interest subvention on rupee export credit
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2012-13/507 · issued 24 May 2013 · ~1 min read
Quick answerRBI has expanded the 2% interest subvention scheme on rupee export credit to cover additional textile and engineering goods tariff lines from April 1, 2013 to March 31, 2014, on existing terms.
What changed
The scheme now includes 6 new tariff lines under ITC(HS) and textiles, plus 101 additional tariff lines in engineering goods (beyond the earlier 134 lines). The subvention period remains April 1, 2013 to March 31, 2014, with all other terms unchanged from the January 14, 2013 circular.
What it means for you
Banks must update their export credit processing systems to identify and apply the 2% subvention to the newly covered tariff lines. This widens the pool of eligible exporters, potentially increasing demand for pre- and post-shipment rupee export credit. Lenders should ensure accurate reporting and claim submission to avoid compliance gaps.
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 flag the new tariff lines (6 textile and 101 engineering) for interest subvention eligibility.
Train credit officers on the expanded list to correctly apply the 2% subvention from April 1, 2013.
Review existing export credit portfolios to identify any accounts that now qualify under the widened coverage.
Ensure timely submission of subvention claims to RBI as per existing procedures.
Who it affects
All scheduled commercial banks (excluding RRBs), Exim Bank, Exporters in textile and engineering goods sectors
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% per annum on pre- and post-shipment rupee export credit, effective from April 1, 2013 to March 31, 2014, for the newly added sectors.
Which sectors are newly covered?
Six tariff lines under ITC(HS) and textiles, and 101 additional tariff lines in engineering goods (on top of the existing 134 lines).
Do the terms and conditions change from the earlier circular?
No. All other terms and conditions remain the same as those outlined in the January 14, 2013 circular.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
RBI’s words: “and DBOD.Dir.BC.No.94/04.02.001/2012-13 dated May 24, 2013”
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/507
DBOD.Dir.BC.No.94/04.02.001/2012-13
May 24, 2013
All Scheduled Commercial Banks and Exim Bank
(excluding RRBs)
Dear Sir/ Madam,
Rupee Export Credit - Interest Subvention
Please refer to our circular DBOD.Dir.(Exp).BC.No.70/04.02.001/2012-13 dated January 14, 2013 wherein interest subvention of 2% was extended w.e.f. January 1, 2013 to March 31, 2014 on pre and post shipment rupee export credit for certain employment oriented export sectors.
2. In continuation of the above circular it has been decided to widen the interest subvention scheme to the following sectors for the period April 1, 2013 to March 31, 2014, on the same terms and conditions:
ITC(HS) and Textiles good to 6 tariff lines as per the list given in the Annex –I .
Additional 101 tariff lines in engineering good sector in addition to the existing 134 lines as per the list given in Annex- II .
3. A directive No. DBOD.Dir.BC.No.93/04.02.01/2012-13 dated May 24, 2013 issued in this regard is enclosed .
4. All other terms and conditions mentioned in our circular dated January 14, 2013 remain unchanged.
Yours faithfully,
(Prakash Chandra Sahoo)
Chief General Manager
Encl: As above
DBOD.Dir.BC.No.93/04.02.001/2012-13
May 24, 2013
Rupee Export Credit - Interest Subvention
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.69 / 04.02.001 /2012-13 dated January 14, 2013 , hereby notifies as under:
2. It has been decided to widen the scheme to following sectors for the period April 1, 2013 to March 31, 2014 on the same terms and conditions:
1. ITC (HS) and Textiles good to 6 tariff lines as per the list given in the Annex -I
2. Additional 101 tariff lines in engineering good sector in addition to the existing 134 lines as per the list given in Annex- II
(B.Mahapatra)
Executive Director
Encl: As above
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/507 · issued 24 May 2013. 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=7995&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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