Niryat Protsahan Interest Subvention: RBI Guidelines
Why in the news
The RBI laid down how banks should operate the interest subvention under the Export Promotion Mission, a pilot scheme of the government.
Key facts
- Scheme: Export Promotion Mission – Niryat Protsahan.
- Benefit: interest subvention on export credit.
- Status: pilot basis.
- Benefit goes strictly to eligible exporters as the scheme defines them.
Who does what
| Role | Body |
|---|---|
| Issues operational guidelines | Reserve Bank of India |
| Notifies the scheme | Directorate General of Foreign Trade (DGFT) |
| Lenders covered | Scheduled commercial banks, cooperative banks, All-India Financial Institutions |
Credit covered
- Pre-shipment export credit: finance given before goods are shipped.
- Post-shipment export credit: finance given after goods have been shipped.
Exam angle
- Interest subvention applies to pre- and post-shipment credit.
- Guidelines: RBI; notification: DGFT.
- Scheme name: Niryat Protsahan, a pilot.