RBI Trade Relief Measures: What They Mean and Why They Matter Right Now

Global trade has been going through one rough patch after another. Shipping delays, geopolitical tensions, and supply chain bottlenecks have pushed exporters into uncomfortable territory. If you talk to any small or mid-sized exporter today, they’ll probably tell you the same thing: “Business is there, but payments are stuck.

”With that backdrop, the RBI Trade Relief Measures announced on 14 November 2025 couldn’t have come at a better time. I spent some time going through the official RBI press release and notifications (you can see the documents I reviewed), and in this article I’ll break everything down in plain language. No jargon. No legalese. Just the actual changes and what they mean for exporters and lenders.

 

Why Did RBI Announce These Measures?

The Reserve Bank clearly stated that exporters are facing disruptions from global headwinds, and rising debt stress was becoming a risk for otherwise healthy businesses. These measures are meant to:

• Reduce pressure on exporters who are waiting for payments
• Support viable businesses so they don’t fall into default because of temporary disruptions
• Give banks flexibility so credit lines don’t choke genuine exporters

The RBI also emphasised that these are public-interest measures to maintain the country’s credit stability.

1. FEMA Relaxations: More Time to Bring Export Money Home

One major part of the RBI Trade Relief Measures is the change in FEMA regulations around how long exporters get to realise export proceeds. RBI amended FEMA 23(R) through a Gazette notification. Here’s the simple version:

Extended time for bringing export proceeds to India

Earlier: 9 months
Now: 15 months

This applies to export of goods, software, and services.

Why this matters: Many exporters can’t collect payments on time due to delayed shipments or buyers asking for extended credit. The extension gives breathing room and avoids unnecessary FEMA violations.

More time allowed after receiving advance payments

Earlier, goods had to be shipped within 1 year of receiving advance.
Now: 3 years.

That’s a big jump, especially helpful for capital goods, customised machinery, and sectors with long production cycles.

2. Moratorium and Repayment Relief for Exporters

Another big chunk of the RBI Trade Relief Measures comes from the new “Directions, 2025.” This is where RBI gave banks the authority to ease repayment pressure.

Moratorium on loan instalments

For eligible exporters, banks can now offer a moratorium on:

• Term loan instalments (principal + interest)
• Interest recovery on cash credit and overdraft

The moratorium window:
1 September 2025 to 31 December 2025.

During this period:

• Interest will still accrue
• But it must be simple interest (no interest-on-interest)
• Accrued interest can be converted into a small term loan payable by Sept 2026

This is the kind of relief many exporters were hoping for, especially those struggling with debt repayments because shipments were stuck.

3. Working Capital Flexibility for Exporters

Banks often cut drawing power when stock moves slowly. Under stress conditions, this alone can kill cash flow. RBI has allowed:

• Recalculation of drawing power
  
• Reduction in margins
• Temporary adjustments during the relief period

This keeps the working capital line alive even when inventory turnover slows.

4. Easier Export Credit Terms

Export credit—whether pre-shipment or post-shipment—is crucial. RBI made two important changes:

Credit period extended to 450 days

Earlier: 1 year
Now: 450 days for export credit disbursed till March 31, 2026.

This helps exporters whose buyers are paying slowly due to global uncertainties.

Liquidation flexibility for packing credit

If goods couldn’t be shipped due to disruptions, banks can now allow repayment using:

• Domestic sale proceeds
• Proceeds from another export order
• Any legitimate alternate source

This is extremely helpful because packing credit normally must be adjusted strictly against export proceeds from that specific shipment.

5. Clear Rules on Eligibility

The RBI didn’t extend these measures to everyone. Exporters must meet these conditions:

• Belong to one of the specified export sectors (like chemicals, textiles, machinery, electronics, footwear, jewellery etc.)
• Have an export credit facility as of 31 August 2025
• Account must be ‘standard’ on that date

This filters out already-stressed accounts while supporting genuinely impacted exporters.

6. Asset Classification Relief for Banks

The RBI also made life easier for lenders:

• The moratorium period won’t be counted as days past due
  
• Relief won’t be treated as “restructuring”
• No automatic downgrading of accounts

Banks must also create a 5% general provision on these standard accounts, but this can be adjusted later.
This ensures transparency but avoids panic-induced NPA spikes.

What Does All This Mean for Exporters?

If you’re an exporter, here’s the practical takeaway:

• You get more time to receive payments
• You get more flexibility in managing export credit
• Your bank can offer moratorium on instalments
• You can clear packing credit even if goods weren’t shipped
• Your account won’t get downgraded simply because of delays

Think of these measures as a cushion. They don’t remove all the pain, but they soften the blow and help viable businesses stay on their feet.

A Small Personal Reflection

The RBI rarely brings such coordinated relief across FEMA, export credit rules, and loan repayment norms at the same time. That itself shows the seriousness of the situation. Speaking to a couple of exporters in my own circle, the sentiment was the same: “This gives us room to breathe.”

Sometimes policy looks cold on paper, but on the ground, it can be the difference between a business surviving or shutting down.

Final Thoughts

The RBI Trade Relief Measures are comprehensive, timely, and practical. They extend support exactly where exporters are struggling: cash flow, compliance timelines, and loan stress.

If you’re writing or researching about trade policy, these measures are worth watching closely. They’re not just regulatory tweaks; they’re an attempt to stabilise an entire segment of the economy during turbulent global times.