RBI Issues Guidelines on Interest Subvention for Export Credit under Niryat Protsahan

In January 2026, the Reserve Bank of India (RBI) issued operational guidelines for extending interest subvention on pre and post-shipment export credit under the Export Promotion Mission (EPM) – NIRYAT PROTSAHAN (1st Component).

NIRYAT PROTSAHAN – Interest Subvention Component

Objective: To facilitate improved access to pre- and post-shipment rupee export credit for Micro, Small and Medium Enterprises (MSMEs) exporters by reducing the cost of such credit.

Eligible Institutions: The RBI has directed all All Scheduled Commercial Banks (SCB) (excluding Regional Rural Banks (RRBs)), Primary (Urban) Co-operative Banks (UCB), State Co-operative Banks (StCB), All-India Financial Institutions (AIFI) to extend the benefit strictly to eligible exporters.

Eligible MSMEs: All MSME manufacturer exporters and merchant exporters holding a valid active Importer Exporter Code (IEC) and a valid MSME Udyam Registration Number (URM) shall be eligible to receive interest subvention support.

Interest Subvention: The rate of interest subvention – 2.75 % per annum (p.a) will be available on Pre and Post Shipment Rupee Export Credit for MSMEs.

• An MSME exporter may receive a maximum subvention benefit of Rs 50 lakh for Financial Year 2025-26 (FY26).

NIRYAT PROTSAHAN – Collateral Support Component

Objective: This component provides collateral support for export credit, aimed at addressing collateral constraints faced by MSME exporters and improving access to bank finance.

CGTMSE: Under this intervention, a collateral guarantee support for export credit is being introduced in partnership with the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).

Coverage: Guarantee coverage of up to 85% will be provided for MSE and up to 65% for Medium exporters, with a maximum outstanding guaranteed exposure of Rs 10 crore (Cr) per exporter in a financial year.

Note: The RBI has issued operational guidelines only for the Interest subvention component of NIRYAT PROTSAHAN.

About Export Promotion Mission (EPM)

The EPM is jointly implemented by the Department of Commerce (DoC), Ministry of MSME and Ministry of Finance (MoF) was approved with a total outlay of Rs 25,060 Cr for the period FY26 to FY31.

• EPM is jointly implemented by the department of commerce, the ministry of micro, small, and medium enterprises (MSME) and  Directorate General of Foreign Trade (DGFT), the ministry of finance.

The Mission is structured around two integrated sub-schemes, namely:

• NIRYAT PROTSAHAN – which focuses on enabling access to affordable and diversified trade finance.
• NIRYAT DISHA – which supports non-financial enablers such as market access, branding, regulatory compliance, logistics and trade intelligence.