RBI Issues Key Relief Measures for Exporters

RBI has announced important temporary relaxations to help exporters manage global delays and cash-flow pressure

-> Export realisation period:
Revised Limit: 9 months → 15 months
Rationale : Global payment delays and logistical disruptions.
Benefit to Exporters: Additional time to realise export proceeds without triggering FEMA non-compliance.

->Advance Payments:
Extended Shipment Period
Revised Limit: Shipment window extended from 1 year to 3 years, or as per contract terms, whichever is later.
Rationale: Supply-chain bottlenecks and prolonged shipment timelines.
Benefit: Protects exporters from FEMA violations arising due to shipment delays beyond 12 months.

Provides operational certainty for long-gestation export orders.

-> Debt Relief for Affected Businesses:

Measures Include:

• Moratorium on term-loan instalments and working-capital interest due between Sept–Dec 2025.
• Banks permitted to reassess drawing power and relax margin requirements.
  Rationale : Acute cash-flow stress across key export-linked sectors.
  Benefit: Immediate liquidity relief.

Eases repayment obligations and prevents short-term defaults.

-> Export Credit Relaxation:
Revised Credit Period: 270 days → 450 days (valid until 31 March 2026).
Additional Flexibility : Packing credit may be liquidated through alternate funding sources.
Rationale: Delays in shipments and order fulfillment cycles.
Benefit: Reduces financing pressure on exporters.

Enhances flexibility in managing packing credit obligations.

Summary
The RBI’s measures provide critical breathing space, support liquidity, and offer regulatory flexibility to exporters during a period of heightened global uncertainty. These measures are effective immediately.