RBI Announces Moratorium for Exporters
The Reserve Bank of India (RBI) has introduced a four-month moratorium on loan repayments for exporters, aiming to provide relief amidst global trade disruptions.
Targeted Sectors
- Leather
- Apparel
- Gem and Jewellery
- Chemicals
Eligibility and Conditions
- Available to businesses with export credit facilities as of August 31, 2025, classified as "standard".
- Moratorium period: September 1 to December 31, 2025.
- Interest during moratorium converted into a funded interest term loan, repayable between March 31, 2026, and September 30, 2026.
Objective and Implementation
- To alleviate debt servicing burdens due to trade disruptions caused by global issues.
- Immediate effect of relief measures.
- Lenders may recalculate drawing power by reducing margins on working capital borrowings.
Additional Provisions
- Pre- or post-shipment credit before March 31, 2026, can be repaid within 450 days.
- Packing credit facilities before August 31, 2025, can be repaid through non-export income sources.
- Relief measures will not classify loans as non-performing or affect credit history.
- Banks must provision 5% for total outstanding loans under relief measures.
Implications
The regulatory measures, along with the government's credit guarantee scheme, aim to enhance liquidity for exporters. Monitoring of moratorium utilization by exporters is necessary
