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

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  • Last Updated on 17 November, 2025

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RBI extends export credit period

Circular no. RBI/2025-26/96 DOR.STR.REC.60/21.04.048/2025-26; Dated: 14.11.2025

1. Background

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.

2. Key Measures Announced

2.1 Moratorium on Payment of Instalments

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.

2.2 Extended Credit Period for Export Finance

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.

2.3 Asset Classification Norms

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.

2.4 General Provisioning Requirement

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.

3. Significance

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.
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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied