Tuesday, 02 January 2024 12:17 GMT

RBI Extends Trade Relief Measures To Aid Exporters Amid Global Tariff Pressures


(MENAFN- KNN India) New Delhi, Nov 15 (KNN) The Reserve Bank of India (RBI) on Friday announced a series of trade relief measures aimed at easing pressures on exporters facing disruptions caused by global headwinds, particularly tariff-related challenges.

The measures, notified on November 14 under the Reserve Bank of India (Trade Relief Measures) Directions, 2025, are intended to mitigate repayment stress, support working capital flows, and provide greater flexibility in export operations.

In a significant relaxation of FEMA norms, the RBI extended the time period for realisation and repatriation of export proceeds-from the existing nine months to fifteen months-for goods, software and services exported from India.

The central bank has also increased the permissible window for shipment of goods against advance payments to three years from the current one year, or as per contractual agreements, whichever is later.

To alleviate pressure on debt servicing in sectors most affected by tariff shocks, the RBI granted a moratorium on the repayment of term loans and interest on working capital loans falling due between September 1 and December 31, 2025.

Lenders have been allowed to recalculate drawing power in working capital accounts by reducing margins or through a reassessment of borrower requirements during this period.

Export credit norms have also been eased. The maximum credit period for pre-shipment and post-shipment export credit has been extended from 270 to 450 days for credit disbursed up to March 31, 2026.

Additionally, banks may now permit exporters to liquidate packing credit facilities-availed on or before August 31, 2025, but where shipments could not take place-using legitimate alternate sources such as domestic sale proceeds or revenue from substituted export orders.

The RBI stated that the guidelines come into immediate effect and are intended to provide timely support to exporters navigating prolonged trade uncertainties.

(KNN Bureau)

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