RBI Extends Pre and Post-Shipment Export Credit Period to 450 Days

The Reserve Bank of India (RBI) has issued the Trade Relief Measures Directions, 2025, introducing a set of regulatory relaxations to support exporters and borrowers affected by prevailing trade and economic disruptions.

These measures aim to ease liquidity constraints, facilitate credit continuity, and stabilise trade financing flows during challenging market conditions.

All Regulated Entities (REs) have been permitted to grant a moratorium on the payment of instalments falling due from eligible borrowers.

This relief measure is intended to provide temporary financial flexibility to borrowers engaged in export and trade-related activities.

The credit period for both pre-shipment and post-shipment export credit—disbursed up to March 31, 2026—has been extended from one year to 450 days.

This extension offers exporters additional time to realise export proceeds and manage working capital effectively amidst global trade uncertainties.

The classification of assets under these directions will be as per the norms applicable to the respective regulated entities.

This ensures consistency in prudential treatment across banks, NBFCs, and other financial institutions while recognising the temporary nature of the relief.

Regulated entities are required to create a general provision of not less than 5% of the total outstanding in respect of borrower accounts availing these relief measures.

This prudential step balances financial flexibility for borrowers with sound risk management practices for lenders.

The Trade Relief Measures Directions, 2025, are expected to:

Support exporters and trade-oriented borrowers facing delays in payment realisation,

Strengthen liquidity across the trade finance ecosystem, and

Maintain credit discipline and financial stability while providing regulatory flexibility.