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RBI continues export credit relaxation for financing entities till June 30 amid West Asia crisis

The central bank had first introduced the measures in November 2025 amid the US tariff wars

Citing ongoing logistical disruptions stemming from the West Asia crisis, the Reserve Bank of India (RBI) has extended the enhanced export credit period of up to 450 days for both pre-shipment and post-shipment finance on disbursements made until June 30, 2026. It had initially introduced this measure in November 2025 amid the US tariff wars. The directions have come into force with immediate effect and apply to all regulated entities engaged in export financing, including commercial banks, co-operative banks, non-banking financial companies involved in factoring, and all-India financial institutions.

The RBI noted that it has been receiving representations from various stakeholders highlighting difficulties in adhering to export proceeds realisation timelines due to geopolitical uncertainties and supply chain disruptions. The RBI also clarified that the earlier relaxation - extending the period for realisation and repatriation of the full export value of goods, software, and services from nine months to 15 months from the date of export - will remain in effect. 

The central bank said the measures are intended to ease the debt-servicing burden arising from geopolitical tensions and to ensure the continuity of viable export-oriented businesses. It added that it will continue to closely monitor the situation and take appropriate action as needed.