{"id":73498,"date":"2025-11-15T11:28:10","date_gmt":"2025-11-15T05:58:10","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=73498"},"modified":"2025-11-15T11:28:10","modified_gmt":"2025-11-15T05:58:10","slug":"rbi-trade-relief-measures-moratorium-extended-credit-tenor-support-for-exporters","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/rbi-trade-relief-measures-moratorium-extended-credit-tenor-support-for-exporters\/","title":{"rendered":"RBI Trade Relief Measures: Moratorium, Extended Credit Tenor &#038; Support for Exporters"},"content":{"rendered":"<h2><b>RBI Trade Relief Measures Latest News<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The RBI has introduced immediate trade relief measures to help exporters struggling with debt servicing amid global trade disruptions.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These include a loan moratorium, longer export credit tenors, and relaxed asset classification norms, applicable to banks, NBFCs, cooperative banks, and all-India financial institutions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The announcement follows signals from the US about reducing high tariffs on India.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Key exporting sectors such as chemicals, plastics, rubber, leather, apparel, footwear, iron and steel products, and electrical machinery are covered under RBI\u2019s relief framework.<\/span><\/li>\n<\/ul>\n<h2><b>RBI Unveils Relief Package for Tariff-Hit Exporters<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The RBI announced a series of trade relief measures to ease working capital stress, enhance borrowing access, and defer repayments for exporters affected by global trade disruptions.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These measures, effective immediately, cover 20 tariff-hit export sectors including chemicals, plastics, textiles, leather, metals, machinery, vehicles, footwear, and fisheries.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These steps aim to ease compliance pressures for exporters facing global trade disruptions.<\/span><\/li>\n<\/ul>\n<h3><b>Loan Moratorium to Ease Debt Burden<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The RBI has announced a moratorium on term loan repayments and interest recovery for working capital loans due between September 1 and December 31, 2025.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">During this period, interest will accrue only on a <\/span><b>simple interest<\/b><span style=\"font-weight: 400;\"> basis, with no compounding.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Accrued interest will be converted into a funded interest term loan, repayable between April and September 2026.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For working capital loans, lenders may revise drawing power or reassess limits to support affected borrowers.<\/span><\/li>\n<\/ul>\n<h3><b>Improved Access to Working Capital<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The RBI has increased the maximum repayment period for pre-shipment and post-shipment export credit from <\/span><b>270 days to 450 days<\/b><span style=\"font-weight: 400;\"> for loans disbursed up to March 31, 2026.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">For packing credit availed before August 31, 2025, where shipments could not occur, lenders may permit repayment through legitimate alternative sources, including domestic sales or proceeds from substitute export orders.<\/span><\/li>\n<\/ul>\n<h3><b>Safeguards for Asset Quality<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The RBI announced that any moratorium or deferment granted will <\/span><b>not count toward days past due<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">With this, it ensured that borrowers\u2019 accounts are not downgraded under Income Recognition, Asset Classification and Provisioning (IRACP) norms.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These relief actions \u2014 including revised drawing power \u2014 <\/span><b>will not be treated as restructuring<\/b><span style=\"font-weight: 400;\">, and Credit Information Companies must ensure borrowers\u2019 credit histories remain unaffected.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Only exporters with standard asset classification as of August 31, 2025, are eligible.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Relief measures will require 5% provisioning on such loans, though analysts say this is unlikely to significantly impact profitability.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lenders must adopt a formal policy defining eligibility and publicly disclose criteria.<\/span><\/li>\n<\/ul>\n<h3><b>Relaxations Under FEMA for Export Realisation<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The RBI extended the deadline for realising export proceeds from 9 to 15 months.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It also increased the shipment period against advance payments from 1 to 3 years, easing compliance pressures for exporters facing delays.<\/span><\/li>\n<\/ul>\n<h2><b>Recent Government Measures to Boost Export Ecosystem<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The government has extended key timelines to ease pressures on exporters:\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">the period for realisation and repatriation of export proceeds has been increased from 9 to 15 months;<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">the shipment window for goods against advance payments has been extended from 1 to 3 years.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In addition, the Union Cabinet approved two major initiatives worth \u20b945,060 crore to strengthen India\u2019s export ecosystem.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These include:\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">the <\/span><strong><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/export-promotion-mission-epm-strengthening-indias-export-competitiveness\/\" target=\"_blank\">Credit Guarantee Scheme for Exporters (CGSE)<\/a><\/strong><span style=\"font-weight: 400;\">, offering collateral-free loans up to \u20b920,000 crore, and\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">the Export Promotion Mission (EPM) aimed at improving export competitiveness.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Industry leaders say these measures will particularly benefit MSMEs facing tariff-related disruptions, enhance market access, ease liquidity constraints, and address longstanding challenges in logistics, credit availability, and export infrastructure.<\/span><\/li>\n<\/ul>\n<p><b>Source:<\/b><strong> <a href=\"https:\/\/www.thehindu.com\/business\/rbi-announces-trade-relief-measures-to-support-exporters-deal-with-tariff-headwind\/article70280305.ece#:~:text=To%20provide%20relief%20to%20exporters,a%20part%20of%20the%20impact.\" target=\"_blank\" rel=\"nofollow noopener\">TH<\/a> | <a href=\"https:\/\/indianexpress.com\/article\/business\/rbi-trade-relief-measures-loan-moratorium-credit-tenor-extension-10366303\/\" target=\"_blank\" rel=\"nofollow noopener\">IE<\/a> | <a href=\"https:\/\/www.livemint.com\/industry\/banking\/bank-holiday-today-are-banks-open-or-closed-in-jharkhand-on-saturday-november-15-for-birsa-munda-birthday-check-here-11763166967180.html\" target=\"_blank\" rel=\"nofollow noopener\">LM<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>RBI unveils trade relief with loan moratorium, extended export credit tenor, relaxed norms, and FEMA easing to support exporters facing global trade disruptions and tariff pressures.<\/p>\n","protected":false},"author":18,"featured_media":73521,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[60,3705,22,59],"class_list":{"0":"post-73498","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-mains-articles","9":"tag-rbi-trade-relief-measures","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/73498","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=73498"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/73498\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/73521"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=73498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=73498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=73498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}