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The Reserve Bank of India introduced trade relief measures for exporters to counter ongoing logistical disruptions and geopolitical uncertainties. The central bank extended the enhanced export credit period of 450 days for all disbursals made until June 30, 2026.
The bank released the Reserve Bank of India (Trade Relief Measures) Directions, 2026, to provide a buffer for businesses affected by the West Asia crisis. The RBI on Tuesday confirmed that the extension applied to both pre-shipment and post-shipment export credit facilities. The central bank originally set the deadline for these credit disbursals at March 31, 2026. The decision to push the date forward stemmed from persistent challenges reported by various stakeholders regarding the realization of export proceeds. "Reserve Bank is statutorily mandated to operate the credit system of the country to its advantage. In this endeavour, and with a view to mitigating the burden of debt servicing brought about by geopolitical tensions caused by West Asian crisis and to ensure the continuity of viable businesses, Reserve Bank being satisfied that it is necessary and expedient in the public interest to do so, issues these Directions hereinafter specified," RBI stated. The Reserve Bank also maintained the extended timeline for the realization and repatriation of the full export value of goods, software, and services. Exporters currently have fifteen months from the date of export to complete this process, a duration that the bank increased from the standard nine-month period in November 2025. The bank clarified that the "relaxations shall continue to remain in force" and advised that "exporters may continue to avail the facility in accordance with the conditions stipulated therein." This measure addressed the difficulties exporters faced in adhering to original timelines due to global logistical constraints. The Trade Relief Measures Directions applied to several regulated entities, including commercial banks, primary urban co-operative banks, state and central co-operative banks, and non-banking financial companies. These institutions received the authority to permit the 450-day credit period for disbursals. For packing credit facilities where the dispatch of goods could not occur, the directions allowed for more flexible liquidation options. Regulated entities permitted exporters to settle these facilities through "legitimate alternate sources, including domestic sale proceeds of such goods or substitution of contract with proceeds of another export order." The Reserve Bank issued these directions under the powers conferred by the Banking Regulation Act, 1949, the Reserve Bank of India Act, 1934, and the Factoring Regulation Act, 2011. The central bank indicated it would "continue to monitor the situation closely and intervene in most appropriate manner, as and when required." (ANI)
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