India stops portability of UIN numbers to new banks for exporters availing interest subvention support

India halts portability of Unique Identification Numbers to new banks for exporters availing interest subvention from Jan 2. Subvention ends if a loan is classified as NPA.1 Min ReadIndia has stopped the allowance of portability of existing Unique Identification Numbers (UIN) to nee banks for exporters availing interest subvention support for pre and post-shipment export credit from 2nd January. Under the amended norms, subvention benefit won’t be effective from the date on which the loan account was classified as a Non-Performing Asset (NPA). The move is expected to provide clarity on the date and conditions based on which they can claim benefits. Exporters availing credit from multiple banks will continue bearing responsibility to ensure that total interest subvention claims remain within the prescribed annual ceiling, which is meant to check excessive claims.A trade by the Directorate General of Foreign Trade (DGFT) said: “In cases where the borrower repays the entire loan amount in advance before thestipulated tenure, the lending institution shall report the early foreclosure of the loan account to the RBI. Interest subvention shall be applied only for the actual period the credit remained outstanding.” The notification allows banks to obtain undertakings from exporters confirming that cross-bank claims do not exceed the ₹50 lakh per Import Export Code (IEC) limit.Continue Reading(Edited by : Srabastee Biswas)

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