Amid Global Trade Disruptions, RBI Eases FEMA Rules And Repayment Timelines For Exporters

Amid Global Trade Disruptions, RBI Eases FEMA Rules And Repayment Timelines For Exporters

The Reserve bank of India has taken several measures to mitigate the impact of trade disruptions on exports arising on account of global headwinds. The move is expected to provide short-term breathing space to export-oriented businesses facing delayed shipments, weaker demand, and tighter cash flows.

In its press release, the RBI said it has extended the timelines under the Foreign Exchange Management Act (FEMA) for the realisation and repatriation of export proceeds. Exporters will now have 15 months, instead of the earlier 9 months, to realise and bring back the full value of goods, software, or services exported from India. The time limit for shipping goods after receiving advance payments has also been increased from one year to three years, giving exporters greater flexibility in managing delayed orders and supply constraints.

Besides FEMA relaxations, the central bank has notified a new set of norms under the Reserve Bank of India (Trade Relief Measures) Directions, 2025. These include a moratorium on term-loan repayments and interest recovery on working-capital loans falling due between September 1 and December 31, 2025. Lenders have also been allowed to reassess drawing power for working-capital limits by reducing margins or recalculating limits, helping firms manage temporary liquidity gaps.

In addition, RBI has eased export-credit repayment rules. The maximum credit period for both pre-shipment and post-shipment export credit has been extended from one year to 450 days for loans disbursed till March 31, 2026. Exporters who had taken packing credit on or before August 31, 2025, but could not dispatch goods, will be allowed to repay these facilities using alternate legitimate sources, including proceeds from domestic sales or another export order.

Swipe Left For Next Video

Abhishek Jain, Indirect Tax Head & Partner, KPMG says “the RBI's measures give exporters timely breathing space at a moment when cash cycles are tightening due to tariffs and delayed realisations.

“Extending repayment timelines and easing credit terms will directly help companies manage working capital without disrupting production plans. It's a practical intervention that stabilises sentiment in the near term, and the next thing industry is now watching closely is the tariff rationalisation announcement — because that will ultimately decide cost competitiveness and planning the future," he adds.

Source: News18
Related Posts: Tata Group prepared to mitigate risks from West Asia Rs 1 lakh Crore Fund To Mitigate R&D Risks Reserve Bank Keeps Interest Rates Unanimously Unchanged At 5 HDFC Bank, ICICI Bank, IDFC First Bank to announce quarterly earnings on this date India’s Forex Reserve Is Now Almost Twice The Pakistan's GDP India's Forex Reserve At Record High Justice Department probes mortgage fraud claims against Lisa Cook of Federal Reserve Trump orders removal of Federal Reserve governor US Federal Reserve officials showed deep divisions at December meeting Second tigress translocated to Sahyadri Tiger Reserve under Operation TARA