RBI Announces Relief Measures for Exporters: Moratorium & Credit Extensions

Amid global trade challenges and financial pressure on exporters, the Reserve Bank of India (RBI) has announced a set of relief measures aimed at easing repayment stress and providing credit flexibility. These measures will benefit exporters across key sectors and are intended to ensure continued trade competitiveness without compromising financial sector health. The relief steps allow moratoriums on loan repayments, extended export credit tenors, and more time for realisation of export proceeds, which will be implemented through banks, NBFCs, and other regulated entities.

Key Relief Measures Announced by RBI

Loan Moratorium for Exporters

Exporters with standard accounts as of 31 August 2025 are eligible for a moratorium on term loan repayments falling due between 1 September 2025 and 31 December 2025.

• This includes principal and interest deferment on term loans.
• For working capital (cash credit/overdraft), interest will accrue on a simple interest basis without compounding.
• The interest accrued during the moratorium can be converted into a Funded Interest Term Loan (FITL) repayable by 30 September 2026.

Extended Export Credit Timelines

To reduce pressure on exporters and provide financial breathing room,

• Pre-shipment and post-shipment export credit (for loans sanctioned till 31 March 2026) will now have a maximum tenor of 450 days, up from 270 days.
• Export proceeds must now be realised and repatriated within 15 months, compared to the previous 9-month timeline.
• For advance payments, the shipment deadline has been extended to 3 years, up from 1 year, allowing greater flexibility in contract execution.

Eligibility and Applicability

These measures are available to exporters across identified sectors such as,

• Textiles and garments
• Leather and footwear
• Chemicals and plastics
• Electrical machinery
• Iron and steel

To qualify, accounts must be classified as standard assets as of 31 August 2025. The scheme is applicable across all regulated entities, including commercial banks, NBFCs, cooperative banks, and all-India financial institutions.

Key Static Facts

• Policy Announced By: Reserve Bank of India (RBI)
• Scheme Name: Trade Relief Measures, 2025
• Eligible Borrowers: Exporters with standard accounts as on 31 August 2025
• Moratorium Period: 1 September 2025 to 31 December 2025
• Export Credit Tenor Extension: From 270 days to 450 days (loans sanctioned till 31 March 2026)
• Export Proceeds Realisation Time: Extended from 9 months to 15 months