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RBI Grants Exporters More Time and Payment Relief After US Tariff Shock

The package takes effect immediately to ease cash‑flow stress caused by recent US tariff shocks.

Overview

  • Export realisation deadline is extended from nine to 15 months and shipment after advance is allowed for up to three years under amended FEMA rules.
  • Lenders may grant a moratorium or defer interest on dues falling between September 1 and December 31, 2025, with simple interest accruing and conversion to a funded interest loan repayable by September 30, 2026.
  • The maximum tenor for pre‑shipment and post‑shipment export credit rises from 270 to 450 days for facilities disbursed through March 31, 2026.
  • Banks can recalculate drawing power for working capital and permit liquidation of packing credit from domestic sale proceeds or substituted export orders for facilities availed by August 31, 2025.
  • Measures will not be treated as restructuring, credit bureaus must shield borrowers’ records, lenders must make a 5% provision and submit fortnightly reports, and a separate government package of about Rs 45,060 crore complements the RBI relief.