In a move aimed at cushioning Indian exporters from ongoing global trade disruptions, the Reserve Bank of India (RBI) has rolled out a fresh set of trade relief measures. These steps are designed to ease liquidity pressures, extend compliance timelines, and offer flexibility to sectors facing repayment stress.
Extended Time for Export Realisation and Shipments
The central bank has relaxed key FEMA regulations to provide exporters additional breathing room:
- Export proceeds realisation period extended: Exporters will now have 15 months—up from the previous 9 months—to realise and repatriate the full value of goods, software, or services exported from India.
- Longer window for shipments against advance payments: The time permitted for shipping goods after receiving advance payment has been raised from 1 year to 3 years, or as per the specific contract terms, whichever is later.
These changes are aimed at mitigating delays in supply chains and cross-border logistics caused by global uncertainty.
Debt Relief for Impacted Sectors
Under the new RBI (Trade Relief Measures) Directions, 2025, the central bank has provided temporary relief for stressed borrowers in export-linked sectors.
Key provisions include:
- Moratorium on loan repayments: Term loan instalments and interest on working capital facilities falling due between September 1 and December 31, 2025 can be deferred.
- Recalculation of drawing power: Lenders may revise drawing power for working capital loans during this period by reducing margins or reassessing working capital needs.
This is expected to ease immediate payment pressures on industries hit hardest by trade disruptions.
Export Credit Relaxations
Exporters will also benefit from more flexible credit rules:
- Extended export credit period: Banks may now offer up to 450 days—an increase from the one-year limit—for both pre-shipment and post-shipment export credit disbursed until March 31, 2026.
- Alternate settlement for packing credit: Exporters who availed packing credit on or before August 31, 2025, but could not ship goods, may liquidate the credit from any legitimate alternative source. This includes domestic sale proceeds or proceeds from substitute export contracts.
Effective Immediately
All the measures come into force with immediate effect, giving exporters and lenders the flexibility to navigate a challenging global trading environment.
