Daijiworld Media Network - New Delhi
Mumbai, Nov 14: The Reserve Bank of India (RBI) on Friday unveiled a series of sweeping measures aimed at cushioning Indian exporters from the ongoing global trade disruptions. The steps, effective immediately, are designed to ease compliance pressure, improve liquidity, and provide additional breathing room to sectors hit hardest by international headwinds.
Among the most significant changes is the extension of the export realisation period. Exporters will now have 15 months—up from the earlier nine—to realise and repatriate the full value of goods and services shipped from India. Similarly, the deadline for shipping goods against advance payments has been stretched from one year to three years, giving exporters more operational flexibility.
To further ease stress in vulnerable sectors, the RBI has imposed a moratorium on repayment of term loans and interest on working capital loans falling due between September 1 and December 31, 2025. Banks and financial institutions have been permitted to reassess or reduce margins to recalculate drawing power in working capital accounts, offering additional liquidity support.
Export credit norms have also been relaxed. The maximum duration for pre-shipment and post-shipment export credit has been expanded to 450 days, applicable for credit disbursed up to March 31, 2026. Additionally, banks may now liquidate packing credit facilities—availed on or before August 31, 2025 where goods could not be dispatched—using legitimate alternate sources such as domestic sale proceeds or proceeds from substitute export orders.
The policy shift has been widely welcomed by the export community. The Federation of Indian Export Organisations (FIEO) called the RBI’s announcement “a major relief” for the sector. FIEO President S.C. Ralhan noted that the extended timelines would help exporters offer more competitive credit terms to overseas buyers and strengthen trade-related compliance. He added that the liquidity relief from moratoriums and eased packing credit norms would allow businesses to navigate disruptions more smoothly.
Ralhan also pointed out that the extended realisation period aligns India with several global economies, ensuring a more level playing field for Indian exporters navigating an unpredictable international market.
With global trade still facing significant volatility, the RBI’s measures mark a proactive attempt to stabilise export operations and support businesses through a challenging period.