Central bank eases debt repayment norms, extends credit periods and widens timelines for export value realisation to soften the blow of global disruptions
A logo of the Reserve Bank of India | Photo Credit: FRANCIS MASCARENHAS
In a huge succour for exporters, the Reserve Bank of India has announced a host of trade relief measures to mitigate the impact of trade disruptions on exports due to global headwinds.
The measures include easing the burden of debt repayments on specific impacted sectors, enhancing the maximum credit period, and extending the time period for realisation and repatriation of full export value.
The central bank, in its Directions on Trade Related Measures, said lenders’ will provide borrowers, engaged in exports relating to 20 specific impacted sectors, moratorium on/ deferment of payment on all term loans and recovery of interest on working capital loans, as applicable, falling due between September 1 and December 31, 2025.
easing debt burden
The aforementioned move is with view to mitigating the burden of debt servicing brought about by trade disruptions caused by global headwinds and to ensure the continuity of viable businesses.
RBI’s directions are applicable to commercial banks, co-operative banks – urban, State and district central, non-banking finance companies and All India Financial Institutions.
Impacted sectors
The 20 impacted sectors hit by US’ steep tariffs include fisheries, organic chemicals, leather, textiles, gems & jewellery, electrical machinery and equipment, vehicles and furniture.
The central bank has permitted lenders to recalculate ‘drawing power’ in working capital facilities either by reducing the margins or basis reassessment, during the September 1, 2025, and December 31, 2025 period.
Relaxation in export credit repayment
The maximum credit period for exporter-borrowers has been enhanced from 270 days to 450 days for pre-shipment and post-shipment export credit disbursed till March 31, 2026.
The RBI has allowed lenders to liquidate packing credit facilities availed by exporters on or before August 31, 2025, where dispatch of goods could not take place, from any legitimate alternate sources, including domestic sale proceeds of such goods or substitution of contract with proceeds of another export order.
The time period for realisation and repatriation of full export value of goods/software/services exported from India has been extended from nine months to 15 months from the date of export from India.
Further, the time period for shipment of goods has been increased from one year to three years from the date of receipt of advance payment or as per agreement, whichever is later.
Anil Gupta, Senior Vice President & Co Group Head – Financial Sector Ratings, ICRA Ltd, said: “The proposed regulatory measures coupled with the credit guarantee scheme for exporters announced by Government of India could provide liquidity relief to exporters and help them ride out the near-term pressure on cashflows because of deferment of orders or payments. However, we will have to monitor the extent of moratorium or deferment availed by the exporters. A large quantum of borrowers availing either of relief measures could potentially increase the uncertainty on asset quality for the lenders. A five percent provisioning on such loans, where lenders have given a relief to exporters could also result increase in increase in provisions, but unlikely to have a material impact on near-term profitability.”
Published on November 14, 2025
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