RBI Announces Comprehensive Measures to Ease Trade Disruptions Amid Global Headwinds 

Introduction

The Reserve Bank of India has rolled out a set of temporary regulatory relaxations aimed at supporting exporters who are struggling due to ongoing global trade disruptions.  

Central bank of India (RBI) extends timelines for export proceeds, eases credit norms, and offers loan moratorium to cushion Indian exporters from liquidity stress and ensure continuity in trade operations.

Background

Indian exporters have been grappling with mounting stress as global uncertainties intensify. Global trade has become unpredictable, payments are getting delayed, and cash flow is tighter than ever.  

Demand in key markets has weakened, while currency fluctuations have added further risk. As a result, exporters struggle to repay loans and fund new consignments, raising the risk of defaults and tighter credit access. 

To ease this pressure, the Reserve Bank of India amended FEMA regulations and issued the Trade Relief Measures Directions, 2025.  

Key Measures

FEMA Regulation for Extension of Export Realisation Timelines 

The Central Bank (RBI) India has eased rules for exporters by lengthening the time allowed to bring back overseas earnings. Instead of the earlier 9 months deadline companies now have up to 15 months to repatriate their fund. This change is expected to reduce stress for businesses that are waiting on delayed payments from international buyers.  

Exporters handling advance payment orders will also have up to 3 years to complete shipments, a move aimed at easing pressure from shipping delays and trade flow interruptions. Together, these measures provide exporters with greater flexibility to stay resilient in a volatile global trade environment. 

Moratorium on Loan Repayments for Exporters 

To ease the financial strain on exporters, the Central Bank (RBI) has introduced a temporary moratorium under the Trade Relief Measures Directions, 2025. Between September 1, 2025 and December 31, 2025 allowing repayment obligations such as instalments on term loans and pause on interest repayment commitments for working capital loans. This pause is meant to reduce immediate cashflow stress and give businesses the breathing space to reorganize operations without the risk of default. 

Alongside the moratorium, banks have been allowed to adjust working capital facilities more flexibly. They can lower margin requirements or reassess borrowing needs, ensuring exporters maintain liquidity despite slower inventory movement and weaker turnover. Together, these steps provide short-term relief and greater financial flexibility, helping exporters remain resilient in a turbulent global trade environment. 

Relaxation in Export Credit Repayment Norms

To ease liquidity pressures, the Central Bank (RBI) has extended the repayment period for export credit. Exporters can now access pre-shipment and post-shipment credit for up to 450 days, compared to the earlier limit of one year, for loans sanctioned up to March 31, 2026, the extended repayment window is intended to ease financial pressures by giving businesses more time to adjust their obligations, thereby offering greater flexibility in managing cash flows and sustaining operations amid unpredictable global trade conditions. 

In addition, banks have been allowed to settle packing credit facilities sanctioned up to August 31, 2025 by drawing on other approved funding channels. These sources may comprise revenues generated from domestic sales or funds arising from substituted export contracts, particularly in cases where the original shipments could not be executed as scheduled. The relaxation ensures exporters are not penalized for unforeseen delays and helps them maintain financial stability despite disruptions in supply chains. 

Conclusion

Overall, the RBI’s measures provide timely relief to exporters by easing financial pressures and offering greater operational flexibility. These steps help stabilise cash flows, support business continuity, and strengthen the resilience of India’s export sector amid ongoing global uncertainties. 

Source – Trade Relief Measures – Official Website of Reserve Bank of India