RBI’s Trade Relief Measures 2025: Stability Without Compromise

With global trade volatility continuing to strain export cash flows, the Reserve Bank of India (RBI) has rolled out the Trade Relief Measures Directions, 2025, offering targeted and time-bound financial flexibility to affected exporters.

Issued on 14 November 2025, the framework is designed to support viable export businesses while preserving credit discipline and systemic stability.

Who Can Avail the Relief?

The Directions apply to banks, NBFCs, and financial institutions. Exporters are eligible if they:

• Operate in RBI-notified export sectors
• Had outstanding export credit as of 31 August 2025
• Maintained standard asset classification across lenders on that date

This ensures relief reaches businesses facing temporary disruption—not structural weakness.

What Relief Is Available?

Eligible borrowers may receive:

• Moratorium or interest deferment from September to December 2025
• Interest accrual on a simple interest basis only (no compounding)
• Conversion of accrued interest into a Funded Interest Term Loan, repayable by 30 September 2026
• Extended export credit tenor of up to 450 days
• Flexibility in working capital assessment and drawing power during the relief window

Regulatory Comfort for Borrowers and Lenders

Crucially, relief granted:

• Is not treated as restructuring
• Does not trigger asset classification downgrade
• Must not impair the borrower’s credit history

Lenders are, however, required to maintain prudent 5% general provisioning, ensuring balanced risk management.

The Bigger Picture

RBI’s approach offers breathing space without moral hazard—supporting exporters through global uncertainty while keeping India’s financial system resilient.