The Directorate General of Foreign Trade (DGFT), under the Ministry of Commerce and Industry, has issued a Trade Notice introducing key amendments to the Interest Subvention Support Scheme for pre- and post-shipment export credit under the Export Promotion Mission (EPM) – Niryat Protsahan.
The DGFT has introduced stricter rules around the Unique Identification Number (UIN). A fresh UIN must be generated whenever an exporter changes the lending bank. UIN portability is explicitly disallowed. UIN must be generated before loan disbursal; failure will result in denial of subvention benefits. The applicable subvention rate will be based on the date of loan disbursal.
The amendments build upon earlier trade notices issued in January 2026 and aim to streamline implementation, prevent misuse, and ensure greater accountability among exporters and lending institutions.
One of the key revisions ensures that export credit facilities eligible for interest subvention must strictly adhere to the prevailing directions issued by the Reserve Bank of India (RBI), including aspects relating to the period and structure of credit. This aligns the scheme more closely with RBI’s regulatory framework and removes ambiguity regarding qualifying credit.
A crucial insertion clarifies that interest subvention will cease immediately once a loan account is classified as a Non-Performing Asset (NPA). No benefit will be available from the date of such classification, reinforcing credit discipline among exporters.
To curb excessive claims, exporters availing credit from multiple banks will continue to bear responsibility for ensuring that total interest subvention claims remain within the prescribed annual ceiling. Additionally, banks may now obtain undertakings from exporters confirming that cross-bank claims do not exceed the ₹50 lakh per Import Export Code (IEC) limit.
The amendments also address the inclusion and exclusion of tariff lines in the Positive List: no retrospective benefits will be granted; subvention applies only to credit disbursed after inclusion of a tariff line; and if a tariff line becomes ineligible later, pre-shipment credit already disbursed remains eligible, but post-shipment credit will not qualify thereafter
A detailed digital workflow has been introduced for claim submission: mandatory registration of banks on the DGFT portal; online submission of reimbursement claims; entry and validation of borrower UINs; and submission of additional loan-related data in prescribed formats
This digitization is expected to improve efficiency and reduce processing delays.
The DGFT clarified that UIN and UDIN refer to the same identifier under the scheme. It also explicitly bars the use of UINs issued under the earlier Interest Equalisation Scheme (IES) for claiming benefits under the new EPM framework.
In cases of early loan repayment, interest subvention will now be restricted strictly to the actual period for which the credit remained outstanding, ensuring proportional benefit.
Amendments Table (As Issued)
| Para No. | Existing Text | Revised/Inserted Text |
| Draft HBP Para X.1(b) | Export credit extended by lending institutions in accordance with RBI’s directions shall qualify for support. | Credit facility shall be eligible as per RBI’s Consolidated Directions in force, including period and structure. |
| Inserted – Draft Appendix-A Para 3(f) | — | No subvention from the date loan becomes NPA; no benefit thereafter. |
| Draft HBP Para X.4(e) | Exporter responsible for ensuring claims remain within annual ceiling. | Same responsibility retained; banks may obtain undertaking for ₹50 lakh per IEC cross-bank limit. |
| Draft HBP Para X.4(d) | UIN to be furnished; banks to report claims mapped to UIN. | New UIN required if bank changes; no portability; must be generated before disbursal; rate applicable as on disbursal date. |
| Inserted – Draft HBP X.1(f) | — | No retrospective benefit; eligibility only after tariff inclusion; post-shipment credit ineligible if tariff removed. |
| Inserted – Appendix A Para 5 | — | Detailed online claim submission process for banks including registration, UIN entry, and data submission. |
| Draft Para X.4(f) | — | UIN and UDIN same; sample format provided; old IES UINs not valid; UIN only for notified HS codes. |
| Draft Appendix A Para 4(d) | Early repayment to be reported to RBI. | Subvention only for actual outstanding period. |
| Draft HBP Para X.2(a) | Export credit disbursed as per RBI guidelines; subvention passed upfront. | Aligned with RBI consolidated directions; reimbursement claimed by lending institution. |
