Niryat Protsahan Interest Subvention 2026 – RBI Export Credit Guidelines for MSMEs

Niryat Protsahan interest subvention scheme 2026 by RBI provides MSMEs with reduced export credit cost. Learn eligibility, banks involved, limits, and benefits for export finance.

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

The Reserve Bank of India (RBI) has released detailed operational guidelines to implement interest subvention on pre‑ and post‑shipment export credit under the Export Promotion Mission (EPM) — specifically the Niryat Protsahan scheme. This policy move aims to support Micro, Small and Medium Enterprise (MSME) exporters by reducing the cost of export finance, boosting liquidity and strengthening India’s global trade competitiveness.

The RBI circular for this initiative outlines who can provide the subvention, which exporters are eligible, and the scale of financial benefits available. Designed on a pilot basis, this subvention framework replaces portions of earlier schemes and introduces a more structured approach to making export credit affordable for MSMEs. The guidelines were notified in January 2026 by the Directorate General of Foreign Trade (DGFT) and operationalized by the RBI.

Objective of the Interest Subvention Component

The interest subvention scheme under Niryat Protsahan focuses on lowering the interest burden on export credit provided in Indian rupees. Pre‑shipment credit helps exporters finance raw materials and goods before shipment, while post‑shipment credit supports funding after goods are shipped — a critical need in export business cycles. The subvention makes these credit costs lower by offering a fixed interest discount, which directly enhances export working capital and improves cash flow for MSMEs.

Who Can Provide the Interest Subvention?

Under the RBI guidelines, several financial institutions are authorized to extend these benefits:

• Scheduled Commercial Banks (SCBs) — excluding Regional Rural Banks
• Urban Co‑operative Banks (UCBs)
• State Co‑operative Banks (StCBs)
• All‑India Financial Institutions (AIFIs)

These institutions must follow RBI’s credit directives when offering subvention to exporters.

Eligibility Criteria for MSME Exporters

To access the interest subvention, exporters must fulfil certain criteria:

• Possess a valid Importer‑Exporter Code (IEC)
• Have a Udyam Registration Number (URN) as an MSME
• Be manufacturer exporters or merchant exporters under a notified positive list of product tariff lines

Only entities formally registered as MSMEs and exporting goods on the eligible list qualify for subvention benefits.

Interest Subvention Rates and Cap

Under the scheme, eligible MSME exporters receive interest subvention at a specified rate per annum on both pre‑ and post‑shipment rupee export credit. An annual cap of ₹50 lakh per IEC has been set for the financial year FY2025–26. This cap ensures the support is spread across a large number of beneficiaries and balances fiscal prudence with export boost objectives.

Impact on Exporters and MSME Sector

By lowering the effective cost of export credit, the scheme strengthens exporters’ capacity to compete internationally. It enhances liquidity, reduces working capital stress, and encourages MSMEs to scale up production and market reach. The structured approach also ensures clarity in operational processes for banks and exporters alike.

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Why This News is Important for Government Exam Aspirants

Relevance to Banking & Economy Sections

This policy update holds high significance for aspirants preparing for competitive exams across banking, railways, SSC, UPSC (PCS/IAS), defence and police services because it deals with key areas of economic policy, financial regulation, MSME support and export promotion. Questions related to RBI circulars, export incentives, scheme eligibility and economic objectives frequently appear in Banking Awareness and General Studies papers.

Alignment with Current Economic Priorities

For exams like IBPS, SBI PO, RBI Grade B, UPSC Prelims & Mains, knowledge of government interventions that aim to boost trade and MSME growth is crucial. The interest subvention framework intersects with topics such as credit policy, MSME financing, international trade support measures, GDP growth drivers and financial inclusion — broad areas tested in the Economy and Finance sections.

Understanding this policy also helps candidates answer analytical short‑answer questions in Mains exams and essay topics about measures to strengthen India’s export ecosystem and financial support to small businesses.

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Historical Context: Evolution of Export Credit Support

The Government of India has historically used interest subvention schemes to support exporters, especially MSMEs, to improve global competitiveness. Earlier, the Interest Equalization Scheme (IES) provided interest support on pre‑ and post‑shipment exports. Over time, export credit support evolved to address structural issues, liquidity crises and global market challenges.

In January 2026, the Interest Subvention Scheme under Niryat Protsahan was introduced as part of the larger Export Promotion Mission (EPM), launched by the Ministry of Commerce & Industry. The EPM includes multiple sub‑schemes to provide financial and non‑financial support for enhancing India’s trade footprint. Key components besides interest subvention include collateral support for credit, market access facilitation and branding initiatives for exporters.

This transition reflects a shift from broad credit support to more targeted, transparent and rules‑based schemes aligned with RBI’s consolidated credit norms — improving implementation and policy clarity for export‑linked SMEs.

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Key Takeaways from RBI Operational Guidelines on Export Credit Subvention

FAQs: Frequently Asked Questions

1. What is Niryat Protsahan?

Niryat Protsahan is an export promotion initiative under the Export Promotion Mission (EPM) by the Government of India, designed to provide financial and policy support to MSME exporters, including interest subvention on pre- and post-shipment export credit.

2. Who can avail interest subvention under this scheme?

Eligible MSME exporters with a valid Importer Exporter Code (IEC) and Udyam registration can benefit from interest subvention on rupee export credit.

3. Which banks and financial institutions provide interest subvention?

The scheme allows Scheduled Commercial Banks (excluding RRBs), Urban Co-operative Banks, State Co-operative Banks, and All-India Financial Institutions (AIFIs) to extend interest subvention to eligible exporters.

4. What is the interest subvention limit per IEC?

For FY2025–26, the maximum subvention benefit is capped at ₹50 lakh per IEC per financial year.

5. How does pre-shipment and post-shipment credit differ?

• Pre-shipment credit: Funding provided before exporting goods to cover raw materials, manufacturing, and packing costs.
• Post-shipment credit: Funding provided after goods have been shipped to manage receivables and working capital.

6. Why is this scheme important for MSMEs?

The scheme reduces financing costs, improves cash flow, and strengthens export competitiveness, enabling MSMEs to expand their global presence.

7. When were these RBI guidelines notified?

The RBI issued the operational guidelines in January 2026, under the aegis of the Directorate General of Foreign Trade (DGFT).

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