RBI offers moratorium for tariff-hit exporters, extends FX realisation window

Exporters will also get 15 months, instead of nine, to realise and repatriate export proceeds from abroad.

The Reserve Bank of India (RBI) on November 14 notified a slew of measures to ease the burden on exporters hit by steep tariffs, including a moratorium on all term loans due between September 1 and December 31, 2025.

During this moratorium period, interest would continue to accrue but will be "on simple interest basis, without compounding effect," the central bank said.

The central bank has spelt out the 20 sectors that would be eligible for the moratorium, which includes organics chemicals, plastics, apparels, and footwear.

Exporters will also get 15 months, instead of nine, to realise and repatriate export proceeds from abroad. The deadline for shipment of goods against advance payments has also been extended from one year to three years.

To prevent stressed export credit from slipping into non-performing assets, the maximum credit period for pre- and post-shipment finance disbursed up to March 31, 2026, has been extended to 450 days.

Further, if goods cannot be dispatched, packing credit availed on or before August 31, 2025, may be liquidated using domestic sale proceeds or proceeds from a substitute export order, offering flexibility in settlements.

These measures will come into effect immediately, the RBI said.

These steps come at a time when US President Donald Trump’s tariffs have prompted several American buyers of Indian exports, especially textiles, to either delay the shipment or cancel them altogether, leaving Indian MSME units with unsold inventory, pending payments and a liquidity squeeze.

This resulted in delayed payments to banks, exceeding 90 days in some cases, thus causing certain exporters’ accounts to be classified as non-performing assets while many others were at risk of facing the NPA tag, Moneycontrol had reported earlier.

Industry associations had approached the Ministry of Finance and the Reserve Bank of India in September seeking relief on loan-repayment obligations.

The US has imposed a massive 50 percent tariff on most Indian exports, effective August 27.