RBI eases norms to help exporters amid global headwinds

Mumbai, Nov 14 (IANS) The Reserve Bank of India (RBI) on Friday announced several measures to mitigate the impact of trade disruptions on Indian exports "arising on account of global headwinds".

The new guidelines, that kick in with immediate effect, include an extension in the time period for realisation and repatriation of full export value of goods and services exported from India from 9 months to 15 months from the date of export and increase in the time period for shipment of goods from 1 year to 3 years from the date of receipt of advance payment or as per agreement, whichever is later.

In order to ease the burden of debt repayments on specific impacted sectors, the new norms also impose a moratorium on payment of all term loans and recovery of interest on working capital loans, as applicable, falling due between September 1, 2025, and December 31, 2025.

Lenders have been given permission to recalculate ‘drawing power’ in working capital facilities either by reducing the margins or basis reassessment during this period to provide further relief to exporters.

The RBI has also relaxed the conditions for repayment of export credit. The maximum credit period has been enhanced from 1 year to 450 days for pre-shipment and post-shipment export credit disbursed till March 31, 2026.

Besides, lenders have been allowed 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 alternative sources, including domestic sale proceeds of such goods or substitution of contract with proceeds of another export order, the RBI further stated.

The Federation of Indian Export Organisations (FIEO) has welcomed the RBI's decision for the extension of the export realisation period and the easing of the burden on debt repayments on specific impacted sectors through moratorium or deferment of payment, and also provided the permission to lenders to recalculate ‘drawing power’ in working capital facilities and the easing of export credit norms.

FIEO President S.C. Ralhan said: "The extension will provide great relief to the export trade. Exporters will be able to offer a better credit period to the foreign buyers. Trade-related compliance will get strengthened, due to this pro-trade development. Indian exporters will get sufficient time for the shipment of goods on receipt of advance payment. Relief measures related to term loan and packing credit will enable exporters to manage their liquidity suitably."

This extension may be in line with several other economies, which will ensure a level playing field to Indian exporters, he added.

--IANS

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