Interest Subvention on Rupee Export Credit Expanded for UCBs
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2012-13/519 · issued 22 Jan 2013 · ~2 min read
Quick answerRBI extends 2% interest subvention on rupee export credit to additional sectors: textiles (6 tariff lines) and engineering goods (101 new tariff lines) for April 1, 2013 to March 31, 2014. Existing terms unchanged.
What changed
The Government of India widened the interest subvention scheme to include exports of ITC (HS) textiles goods covering 6 tariff lines and additional 101 tariff lines in engineering goods sector (beyond the existing 134 lines) for the period April 1, 2013 to March 31, 2014. All other terms and conditions from the January 22, 2013 circular remain unchanged.
What it means for you
Scheduled Primary (Urban) Co-operative Banks holding AD Category I licence can now offer 2% interest subvention on pre- and post-shipment rupee export credit to a broader set of export sectors. This expands the eligible borrower base, potentially increasing export lending volumes. Banks must ensure correct classification of tariff lines as per the annexed lists to claim subvention.
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 include the new 6 textile tariff lines and 101 additional engineering tariff lines for interest subvention claims.
Train loan officers to verify export invoices against the updated ITC (HS) codes from Annex I and Annex II.
Ensure compliance with all existing terms from circular dated January 22, 2013, including documentation and reporting.
Communicate the expanded scheme to eligible export customers to encourage uptake.
Who it affects
Scheduled Primary (Urban) Co-operative Banks holding AD Category I licence, Exporters in textiles (6 tariff lines) and engineering goods (101 new tariff lines), Existing export credit borrowers in the newly added sectors
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 15:23 IST
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).
Which sectors are newly covered under the interest subvention scheme?
Textiles goods under 6 specific tariff lines (e.g., blankets, bed linen, curtains, sacks, tarpaulins, and other made-up articles) and engineering goods under 101 additional tariff lines (e.g., stainless steel products, aluminium articles, base metal fittings, locks, and safes) for the period April 1, 2013 to March 31, 2014.
Does this circular change any other terms of the subvention scheme?
No. All other terms and conditions from the earlier circular dated January 22, 2013 remain unchanged. Only the list of eligible sectors has been expanded.
What is the effective period for the expanded subvention?
The expanded coverage applies from April 1, 2013 to March 31, 2014, as per the Government of India's decision.
📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/519
UBD.BPD. (AD) Cir.No.4/13.05.000/2012-13
June 4 , 2013
The 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 our circular UBD.BPD.(AD).Cir.No.2/13.05.000/2012-13 dated January 22, 2013 on the captioned subject, extending the interest subvention of 2% up to March 31, 2014 on pre and post shipment rupee export credit to specified export sectors.
2. The Government of India has decided to widen the interest subvention scheme to include the following sectors for the period April 1, 2013 to March 31, 2014.
Export of ITC (HS) and textiles goods to 6 tariff lines as per the list given in Annex - I .
Additional 101 tariff lines in engineering goods sector in addition to the existing 134 lines, as per the list given in Annex- II .
3. A directive No. UBD.BPD.Dir. (Exp) No.10 /13.05.000/2012-13 dated May 31, 2013 issued in this regard is enclosed .
4. All other terms and conditions mentioned in our circular dated January 22, 2013 remain unchanged.
Yours faithfully
(A.K. Bera)
Principal Chief General Manager
Encl: as above
Annex - I
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/519 · issued 22 Jan 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=8019&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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