RBI Trade Relief Measures Directions, 2025

The RBI has vide circular RBI/2025-26/96 DOR.STR.REC.60/21.04.048/2025-26 dated November 14, 2025 (“the Directions”) announced regulatory measures to mitigate the burden of debt servicing brought about by trade disruptions caused by global headwinds and to ensure the continuity of viable businesses.

1. Eligible borrowers:
A borrower shall be deemed to be eligible for relief under these Directions upon fulfilment of all of the following conditions:
i. The borrower is engaged in exports relating to any of the sectors specified in Annexure 1 hereto.
ii. The borrower had an outstanding export credit facility from a RE as of August 31, 2025.
iii. The account(s) of the borrower with all REs was/were classified as ‘Standard’ as on August 31, 2025.
In case the Bank has not sanctioned any export credit facility to the borrower, the Bank will check that the borrower qualifies under the criteria stipulated at paragraph ii above, basis a certification obtained from the RE(s) which has/have extended export credit to the borrower.

2. Criteria for providing relief under the Directions:
The Bank shall satisfy itself basis its own assessment that the borrower’s business is impacted by trade disruptions caused by global headwinds and that relief measures are required to ensure the continuity of such viable business. The below factors shall be considered for the assessment:

Significant/material impact on financial performance, liquidity, operations, market standing, etc. of the borrower due to impact of trade disruptions.

3. Relief measures:

A. Term loans (including WCDL/short term loans and funded exposure under trade facilities):
i. The Bank may grant a moratorium on payment of all instalments of term loans falling due between September 1, 2025 and December 31, 2025 for a period as requested by the borrower, subject to its own assessment in terms of the criteria mentioned in para 2 above. Instalments of term loans will include (i) principal and/or interest components; (ii) bullet repayments and (iii) Equated Monthly Instalments.

B. Working capital in the form of cash credit / overdraft:
i. The Bank may defer the recovery of interest applied (and remaining unpaid) in respect of such facilities during the period from September 1, 2025 and December 31, 2025 where a borrower approaches the Bank for such deferment.
ii. The accumulated accrued interest shall be recovered immediately after the completion of this period along with the immediate next interest payment cycle.
iii. The Bank may, at its discretion, recalculate ‘drawing power’ by reducing the margins and/ or reassess the working capital limits, during the period from September 1, 2025 and December 31, 2025. Any such review, after the expiry of the said period shall be based on regular assessments.

Note:
a) Interest shall continue to accrue during the moratorium/ deferment period. However, interest application shall be on simple interest basis, without compounding effect, i.e., there shall be no interest on interest.
b) The accumulated accrued interest during moratorium/ deferment period may be converted into a funded interest term loan / new short term loan which shall be repayable in one or more instalments after March 31, 2026, but not later than September 30, 2026.

C. Extension of tenor for Export Credit
Where a borrower approaches the Bank,
i. The Bank may permit an enhanced credit period of up to 450 days for pre-shipment and post-shipment export credit disbursed till March 31, 2026.
ii. In respect of packing credit facilities already availed by exporters on or before August 31, 2025, where dispatch of goods could not take place, the Bank may allow liquidation of such facilities from any legitimate alternate sources, including domestic sale proceeds of such goods or substitution of contract with proceeds of another export order.

If you meet the Eligibility Criteria under para 1 above and wish to avail benefit of any of the above relief measures, please approach your Relationship Team justifying impact of the global trade disruptions on your business, latest by December 31, 2025.

Annexure 1 – List of Eligible Sectors