The International Financial Services Centres Authority (IFSCA), on March 19, 2026, issued a communication to IFSC Banking Units (IBUs) and Finance Company/Units (FC/FUs) regarding implementation of the “Support for Alternative Trade Instruments under Export Promotion Mission (EPM) – Niryat Protsahan” scheme, as announced by the Directorate General of Foreign Trade.
The scheme is aimed at enhancing access to export finance for MSMEs engaged in international value chains by promoting alternative trade finance instruments, particularly export factoring. It covers both recourse and non-recourse factoring arrangements, denominated in Indian Rupees or freely convertible foreign currencies, entered into with entities regulated by the Reserve Bank of India or IFSCA.
Eligible financial institutions have been directed to extend benefits such as interest subvention or equivalent cost support on export factoring to MSME exporters, while ensuring compliance with operational requirements, reporting obligations, and timelines prescribed under the scheme. The circular has been issued under the powers conferred by the International Financial Services Centres Authority Act, 2019.
[File No. IFSCA-FCR0ITFS/3/2025-Banking]
