We at Finakon track the regulatory changes. We also use AI to create a summary. We are providing a quick overview of the RBI circulars on a weekly basis on our website. The summary is neither exhaustive nor comprehensive. For accurate information, users shall refer to the original circular of the regulator. Finakon shall not be responsible for inferences drawn based on the summary provided.
Modified Interest Subvention Scheme (MISS) for KCC Loans – FY 2025–26
The Government of India has continued the Modified Interest Subvention Scheme (MISS) for FY 2025–26 for short-term loans availed through Kisan Credit Cards (KCC) for agriculture and allied activities.
Farmers can avail loans up to ₹3 lakh at an interest rate of 7% per annum. Lending institutions are eligible for an interest subvention of 1.5%. Farmers who repay on time receive an additional 3% incentive, reducing the effective interest rate to 4% per annum.
The scheme covers crop loans and allied activities such as animal husbandry, dairy, fisheries, and beekeeping, with defined sub-limits. Benefits also extend to post-harvest loans against warehouse receipts and restructured loans in cases of natural calamities, subject to conditions.
Aadhaar-based eKYC, accurate data reporting, and timely claim submission by banks are mandatory for availing scheme benefits.
FEMA Export and Import Regulations, 2026
The Reserve Bank of India has issued the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, effective October 1, 2026, replacing the 2015 regulations. These regulations govern foreign exchange transactions related to the export and import of goods and services under the FEMA framework.
They prescribe requirements for export declarations (EDF), permitted modes of receipt and payment, and defined timelines for export realisation and import payments. The regulations also set out provisions for advance and delayed payments, reduction or set-off of export proceeds, third-party transactions, and special cases such as project exports, merchanting trade, and INR-based trade settlement.
Authorised Dealers are required to monitor, report, and close transactions through RBI-designated systems (EDPMS/IDPMS), and to maintain documented internal policies and SOPs for handling export and import transactions.
The regulations establish a consolidated framework for the management, reporting, and monitoring of foreign exchange transactions in India’s external trade.
FEMA Export–Import Framework Updated for 2026
The Reserve Bank of India has issued the Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026, following a comprehensive review of the existing FEMA framework in consultation with stakeholders. The new regulations govern foreign exchange transactions related to the export and import of goods and services, including merchanting trade, under the Foreign Exchange Management Act, 1999.
Effective October 1, 2026, the regulations replace the existing Master Directions and specified circulars on export and import of goods and services. Authorised Dealers are required to ensure compliance with FEMA, applicable rules, regulations, RBI directions, and the prevailing Foreign Trade Policy while handling all related transactions.
Under the revised framework, Authorised Dealers must route all references to the Reserve Bank through the PRAVAAH portal and report any doubtful transactions to the Directorate of Enforcement. Dealers are also expected to inform their customers of the updated regulatory requirements.
These directions have been issued under Sections 10(4) and 11(1) of FEMA, 1999, and come into force from October 1, 2026, without prejudice to approvals required under other applicable laws.
https://website.rbi.org.in/web/rbi/-/notifications/export-and-import-of-goods-and-services
Interest Subvention for Export Credit under EPM – Niryat Prothsahan
The Government of India has introduced the Interest Subvention Scheme for Pre- and Post-Shipment Export Credit under the Export Promotion Mission (EPM) – Niryat Prothsahan on a pilot basis. The scheme is being implemented in accordance with the operational instructions issued by the Directorate General of Foreign Trade (DGFT) through Trade Notice No. 20/2025-26 dated January 2, 2026, read with Trade Notice No. 22/2025-26 dated January 16, 2026.
Under the scheme, eligible lending institutions are required to extend interest subvention benefits to eligible exporters strictly as per the prescribed scheme provisions and in compliance with applicable regulatory instructions issued by the Reserve Bank of India. Lending institutions must ensure that the benefit is applied only to eligible export credit and that all claims are submitted in line with the notified procedures and timelines.
RBI Notifies Priority Sector Lending Amendment Directions, 2026
The Reserve Bank of India has issued the Priority Sector Lending – Targets and Classification (Amendment) Directions, 2026, amending the 2025 Directions under the Banking Regulation Act, 1949. The amendments are effective immediately.
The updates primarily cover:
- PSL computation norms: Revisions to ANBC, CEOBSE, and treatment of certain foreign currency–linked advances.
- Targets and eligibility: Updated priority sector targets and classifications across bank categories, including export credit, housing, healthcare, microfinance, and MSMEs.
- Credit structures: Clarified treatment of securitisation, loan transfers, co-lending, on-lending by NBFCs/HFCs/MFIs/NCDC, and IBPCs, with added certification requirements.
- PSL Certificates (PSLCs): Introduction of a detailed PSLC Scheme covering purpose, types, trading, accounting, and disclosures.
- Reporting and geography: Revised reporting timelines and updates to district and population-based classifications.
These amendments align the PSL framework with updated RBI prudential and credit regulations.
