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.

Ref.:Notification No. F.No. FEMA 23(R)/(7)/2025-RB; Dated: 13.11.2025

The Reserve Bank of India (RBI) has notified the Foreign Exchange Management (Export of Goods and Services) (Second Amendment) Regulations, 2025, amending provisions under Regulations 9 and 15 of the Foreign Exchange Management (Export of Goods and Services) Regulations, 2015.

The amendments aim to provide greater flexibility to exporters in realising export proceeds and in managing advance payments received against export orders.

Under Regulation 9, the export value of goods, software, or services was required to be realised and repatriated to India within 9 months from the date of export.

The RBI has now extended this period to 15 months, offering exporters additional time for recovery of payments from overseas buyers.

The revised 15-month period also applies to exports made by:

This harmonisation ensures uniformity across all export categories and promotes ease of doing business in international trade.

Under Regulation 15, when an exporter received an advance payment (with or without interest) from a buyer or third party abroad, the exporter was required to ship the goods within one year from the date of receipt of such advance.

The amended regulation now allows exporters up to three years from the date of receipt of advance payment to complete shipment of goods, provided the advance has been declared in the export documentation.

This change provides exporters with greater operational flexibility, especially in cases involving large, complex, or long-term export contracts.

These amendments are expected to: