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.
What you must do
- 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
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.