How is RBI Supporting Exporters During Global Challenges?
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Synopsis
In a bid to support Indian exporters amid global disruptions, the RBI has introduced measures extending export realization timeframes and offering relief on debt repayments. This strategic move aims to enhance liquidity for exporters and foster competitiveness in international markets.
Key Takeaways
- Export realization period extended to 15 months.
- Shipping timeframe increased to 3 years.
- Moratorium on loan repayments for specific sectors.
- Lenders allowed to recalculate working capital facilities.
- Export credit period extended to 450 days.
Mumbai, Nov 14 (NationPress) The Reserve Bank of India (RBI) has introduced several pivotal measures aimed at alleviating the challenges faced by Indian exporters due to ongoing global disruptions. These new regulations, effective immediately, extend the time frame for the realization and repatriation of the full export value of goods and services from 9 months to 15 months from the date of export. Additionally, the timeframe for shipping goods has been increased from 1 year to 3 years from the date of receiving advance payments or as per the agreement, whichever is later.
To further ease the financial strain on certain affected sectors, the newly established norms include a moratorium on all term loan payments and interest recovery on working capital loans due between September 1, 2025, and December 31, 2025.
During this period, lenders are permitted to recalculate the ‘drawing power’ in working capital facilities by either reducing margins or through reassessment, thereby offering additional relief to exporters.
The RBI has also relaxed repayment conditions for export credit, extending the maximum credit period from 1 year to 450 days for both pre-shipment and post-shipment export credit disbursed until March 31, 2026.
Furthermore, lenders can liquidate packing credit facilities obtained by exporters before August 31, 2025, where the dispatch of goods could not occur, utilizing legitimate alternative sources, including domestic sales proceeds or substituting contracts with proceeds from another export order.
The Federation of Indian Export Organisations (FIEO) has applauded the RBI's decision to extend the export realization period and alleviate the debt repayment burden on impacted sectors through moratoriums or deferments. They also support the permission for lenders to recalculate ‘drawing power’ in working capital facilities and the relaxation of export credit norms.
FIEO President S.C. Ralhan stated, “This extension will significantly benefit the export sector, allowing exporters to provide better credit terms to foreign buyers. Trade compliance will improve due to this pro-export approach, giving Indian exporters ample time to ship goods upon receiving advance payments. The relief measures concerning term loans and packing credit will enable exporters to effectively manage their liquidity.”
He added that this extension aligns with practices in several other economies, ensuring Indian exporters remain competitive on a global scale.
Point of View
It is imperative to recognize the RBI's proactive stance in supporting Indian exporters. These measures not only address immediate financial challenges but also position Indian exporters for sustained growth in a global market fraught with uncertainties. By extending timeframes and alleviating debt burdens, the RBI demonstrates a commitment to fostering a robust export ecosystem, which is vital for India's economic resilience.
NationPress
14/11/2025
Frequently Asked Questions
What new measures has the RBI announced for exporters?
The RBI has extended the export realization period to 15 months and increased the shipping timeframe to 3 years, along with providing debt repayment relief.
How will these measures impact Indian exporters?
These measures will enhance liquidity for exporters, allowing them to offer better credit terms and manage their finances more effectively.
What is the significance of the RBI's decision?
The RBI's decision is significant as it aligns Indian exporters with global practices, ensuring they remain competitive amidst global economic challenges.
