A logo of the Reserve Bank of India | Photo credit: FRANCIS MASCARENHAS
The measures include easing the burden of debt repayments for specific affected sectors, extending the maximum credit period and extending the time period for realization and repatriation of full export value.
The central bank, in its Directions on Trade Related Measures, said lenders will provide borrowers engaged in exports related to 20 specific affected sectors, moratorium/deferral of payments on all term loans and recovery of interest on working capital loans, if applicable, maturing between September 1 and December 31, 2025.
easing the debt burden
The above move is aimed at easing the burden of debt servicing due to trade disruptions caused by global headwinds and ensuring the continuity of viable businesses.
The RBI’s directions are applicable to commercial banks, cooperative banks – urban, central state and district banks, non-banking finance companies and all Indian financial institutions.
Affected sectors
The 20 affected industries affected by the US’s high tariffs include fishing, organic chemicals, leather, textiles, gems and jewelry, electrical machinery and equipment, vehicles and furniture.
The central bank has allowed lenders to recalculate the ‘attractiveness’ of working capital facilities, either by reducing margins or reassessing the basis, during the period of September 1, 2025 and December 31, 2025.
Relaxation of export credit reimbursement
The maximum credit period for exporter borrowers has been increased from 270 days to 450 days for pre- and post-shipment export credits disbursed until March 31, 2026.
The RBI has allowed lenders to liquidate packaging credit facilities availed by exporters on or before August 31, 2025, when shipment of goods could not take place, from legitimate alternative sources, including the domestic sale proceeds of such goods or the substitution of the contract with the proceeds of another export order.
The period for realizing and repatriating the entire export value of goods/software/services exported from India has been extended from nine months to fifteen months from the date of export from India.
Furthermore, the period for shipment of goods has been extended from one year to three years from the date of receipt of advance payment or as per agreement, whichever is later.
Anil Gupta, Senior Vice President & Co Group Head – Financial Sector Ratings, ICRA Ltd, said: “The proposed regulatory measures in combination with the Indian government’s announced credit guarantee scheme for exporters could provide liquidity relief to exporters and help them overcome short-term pressure on cash flows due to deferral of orders or payments. However, we will have to monitor the extent of the moratorium or deferment availed by exporters. A large number of borrowers availing of any of these relief measures could potentially avoid the uncertainty could increase asset quality for lenders could see a five percent provision on such loans, with lenders providing support to exporters. This could also lead to an increase in provisions, but is unlikely to have a material impact on profitability in the short term.”
Published on November 14, 2025
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