The government continues to offer help to exporters – this time in the form of RBI easing the rules for repayment of debt and credit by exporters. The Reserve Bank of India (RBI) on Friday issued a set of guidelines to help mitigate the impact of trade disruptions on exports arising due to global headwinds. The guidelines will come into force with immediate effect.
The Central bank has increased the maximum credit period for exporters from one year to 450 days for pre-shipment and post-shipment export credit disbursed till March 31, 2026. It has also allowed lenders 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 alternate sources, including domestic sale proceeds of such goods or substitution of contract with proceeds of another export order. A packing credit facility is a loan extended to an exporter by a bank to finance the pre-shipment activities required to fulfill an export order.
In order to ease the debt repayment burden, the central bank has allowed deferment of payment of all term loans and recovery of interest on working capital loans falling due between September 1, 2025, and December 31, 2025. It has allowed the banks to to recalculate ‘drawing power’ in working capital facilities either by reducing the margins or basis reassessment, during the above period.
The central bank has relaxed the FEMA regulations on realization and repatriation of proceeds of export of goods and services and advance payment against exports. It has extended the time period for such realisation and repatriation from nine months to fifteen months from the date of export from India. The regulator has also increased the time period for shipment of goods from one year to three years from the date of receipt of advance payment or as per agreement, whichever is later.
The government on Wednesday announced a Rs 45,000-crore package for boosting exports.
“The proposed regulatory measures coupled with the credit guarantee scheme for exporters announced by Government of India could provide liquidity relief to exporters and help them ride out the near-term pressure on cash flows because of deferment of orders or payments,” says Anil Gupta, senior vice president & co group head, Financial Sector Ratings, ICRA Ltd.