RBI Moves to Ease Liquidity Pressure on Exporters Facing Short-Term Stress

New Delhi — The Reserve Bank of India’s proposed regulatory measures, along with the government’s new credit guarantee scheme for exporters, are expected to ease liquidity challenges faced by exporters dealing with delayed orders and payments, according to industry experts.

The RBI has introduced several steps to cushion the impact of global trade disruptions on Indian exports. These include easing debt repayment burdens for affected sectors through moratoriums or deferred payments, and allowing lenders to recalculate drawing power in working capital limits. The central bank has also relaxed the repayment timelines for export credit and permitted lenders to clear packing credit facilities—availed on or before August 31, 2025—using any legitimate alternative sources if shipments could not be dispatched.

However, experts say the extent to which exporters use these relief measures will need close monitoring. “If a large number of borrowers opt for moratoriums or deferments, it could raise concerns about lenders’ asset quality,” said Anil Gupta, Senior Vice President and Co-Group Head, Financial Sector Ratings at ICRA.

He added that the additional 5% provisioning required on such loans may increase overall provisions but is unlikely to significantly impact lenders’ short-term profitability.

The Federation of Indian Export Organisations (FIEO) welcomed the RBI’s decisions, especially the extension of the export realisation period from 9 to 15 months and the increase in the shipment period allowed after receiving advance payments from one year to three years.

“These steps will greatly support exporters. They will now be able to offer better credit terms to foreign buyers, and trade compliance will improve as well,” said SC Ralhan, President of FIEO. “Exporters will also have more time to ship goods after receiving advance payments, and the relief on term loans and packing credit will help them manage liquidity more effectively.”

He added that these relaxations align India’s policies with those of several other countries, ensuring a more level playing field for Indian exporters.

With inputs from IANS