RBI Eases Debt and Credit Rules to Support Exporters Amid Global Trade Pressures
The Reserve Bank of India has announced a series of relaxations to help exporters cope with global trade disruptions. In fresh guidelines effective immediately, the central bank has extended the maximum credit period for both pre-shipment and post-shipment export credit to 450 days for loans disbursed until March 31, 2026. It has also permitted banks to liquidate packing credit facilities taken on or before August 31, 2025—where shipments could not be completed—through legitimate alternative sources, including domestic sales or proceeds from substitution export orders.
To ease repayment pressure, the RBI has allowed exporters to defer payments on all term loans and delay the recovery of interest on working capital loans falling due between September 1 and December 31, 2025. Banks have also been given flexibility to recalculate drawing power for working capital by adjusting margins or reassessing requirements. Additionally, FEMA regulations have been relaxed: the period for realising and repatriating export proceeds has been extended from nine to fifteen months, and the time limit for shipment of goods against advance payments has been increased from one year to three years.
These measures come alongside the government’s recently announced ₹45,000-crore package to boost exports. According to ICRA’s senior vice president Anil Gupta, the combination of regulatory relaxations and credit guarantees will provide crucial liquidity support, helping exporters manage cash flow challenges arising from deferred orders and delayed payments.
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