Trade relief push: RBI extends export timelines; exporters get more credit flexibility
The Reserve Bank of India (RBI) on Friday announced a sweeping set of trade relief measures aimed at easing the pressure on exporters battling global headwinds, supply-chain delays and tightening liquidity, according to an ANI report.
The relief package — effective immediately — expands export timelines, relaxes credit norms and grants temporary leeway on loan repayments to help sectors hit hardest by prolonged payment cycles and uncertain overseas demand.
Under FEMA rules, the RBI has extended the period for realisation and repatriation of export proceeds from nine months to 15 months for goods, software and services. Exporters also get more flexibility on advance-payment shipments: the timeline for shipping goods against advances has been stretched from one year to three years, or as per contract terms, whichever is later.
The move is expected to ease pressure on exporters facing delayed deliveries and payment uncertainties.
The RBI has also notified the Reserve Bank of India (Trade Relief Measures) Directions, 2025, allowing stressed exporters temporary repayment relief.
All term loan instalments and interest on working-capital credit falling due between September 1 and December 31, 2025, may now be deferred. Banks have been allowed to recalculate drawing power by adjusting margins or revisiting working-capital needs during this period.
In a major relaxation, the maximum credit period for pre-shipment and post-shipment export credit has been extended from 270 days to 450 days for loans disbursed up to March 31, 2026. This is expected to support exporters contending with elongated order and payment cycles.
Exporters who availed packing credit on or before August 31, 2025, but could not dispatch goods, may now liquidate these facilities through legitimate alternative means. These include domestic sales or proceeds from substitute export contracts — a flexibility meant to prevent working-capital stress from stalled shipments.
The relief package — effective immediately — expands export timelines, relaxes credit norms and grants temporary leeway on loan repayments to help sectors hit hardest by prolonged payment cycles and uncertain overseas demand.
Under FEMA rules, the RBI has extended the period for realisation and repatriation of export proceeds from nine months to 15 months for goods, software and services. Exporters also get more flexibility on advance-payment shipments: the timeline for shipping goods against advances has been stretched from one year to three years, or as per contract terms, whichever is later.
The move is expected to ease pressure on exporters facing delayed deliveries and payment uncertainties.
The RBI has also notified the Reserve Bank of India (Trade Relief Measures) Directions, 2025, allowing stressed exporters temporary repayment relief.
All term loan instalments and interest on working-capital credit falling due between September 1 and December 31, 2025, may now be deferred. Banks have been allowed to recalculate drawing power by adjusting margins or revisiting working-capital needs during this period.
In a major relaxation, the maximum credit period for pre-shipment and post-shipment export credit has been extended from 270 days to 450 days for loans disbursed up to March 31, 2026. This is expected to support exporters contending with elongated order and payment cycles.
Exporters who availed packing credit on or before August 31, 2025, but could not dispatch goods, may now liquidate these facilities through legitimate alternative means. These include domestic sales or proceeds from substitute export contracts — a flexibility meant to prevent working-capital stress from stalled shipments.
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