RBI Gives Relief to Exporters Under Trade Relief Measures Directions 2025:

RBI Gives Relief to Exporters Under Trade Relief Measures Directions 2025 In an effort to protect the Indian exporters from the impact of the global trade disruptions and US tariff issues, the Reserve Bank of India (RBI) has released the directions called the Reserve Bank of India (Trade Relief Measures) Directions, 2025. This comes after the government has approved a six-year Export Promotion Mission with an outlay of Rs 26,060 crore.

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These directions come into force immediately and apply to Commercial Banks, Primary (Urban) Co-operative Banks, State Co-operative Banks and Central Co-operative Banks, Non-Banking Financial Companies (NBFCs), including the Housing Finance Companies, All-India Financial Institutions, and the Credit Information Companies. These measures aim at providing liquidity support to the exporters and help them manage the short-term cash flow disruptions during delayed payments or orders. Let us understand the relief given by the RBI to the exporters. Extension of Export Payment Realisation Under the Foreign Exchange Management (Export of Goods and Services) (Second Amendment) Regulations, 2025, the RBI has extended the export payment realisation period. Now the exporters have 15 months to realise the value of goods, or services, or software exported from India. The earlier time limit was only 9 months. Extended Advance Payment Set The time period for shipping the goods has now been increased from 1 year to three years from the date of receipt of advance payment from the overseas buyers, or as per the contractual agreement, whichever is later. Extension of Export Credit Period The Regulated Entities (REs) may now allow exporters longer credit periods of up to 450 days for pre- and post-shipment export credit disbursed until March 31, 2026. The exporters who availed packing credit before August 31, 2025, but could not ship goods, the Banks may allow the liquidation of such facilities through alternate sources like domestic sales or new export orders.

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Relief in Debt Repayment All regulated Entities (REs) will now grant a moratorium on or deferment of payment of all term loans and recovery of interest on working capital loans that are due between September 1, 2025, and December 31, 2025. For the working capital loans, the interest recovery during this period can be deferred. The interest will accumulate but on a simple basis without compounding. Also, the accrued interest during the moratorium period will be converted into a funded interest term loan repayable by September 30, 2026. The RBI has clarified that such reliefs will not be considered as restructuring, so borrowers' credit ratings will not be downgraded. The regulator has also directed the REs to make a general provision of at least 5% of the total outstanding in eligible accounts by December 31, 2025. The entities are also directed to maintain a management information system (MIS), having the detailed records of relief given to the borrowers.