The Reserve Bank of India has prolonged the enhanced export credit period to support exporters affected by the West Asia crisis. This extension, now up to 450 days, will be in effect until June 30, 2026. The decision was made due to ongoing logistical challenges arising from geopolitical tensions in West Asia.
Exporters have been encountering delays in shipments and payments as a result of disruptions in global supply chains and uncertain market conditions. The RBI has been receiving representations from various stakeholders regarding challenges in adhering to the timelines for the realization of export proceeds.
The central bank noted that stakeholders have highlighted difficulties in meeting earlier deadlines for realizing export proceeds. These challenges are primarily associated with the ongoing geopolitical situation and its impact on trade flows. The enhanced credit period was initially introduced in November 2025 during a period of global trade tensions triggered by tariff-related issues involving the United States.
In addition to extending the credit period, the RBI has confirmed that the relaxation allowing exporters more time to repatriate their earnings will continue. Exporters will now have up to 15 months, instead of the usual nine months, to realize and repatriate the full value of goods and services exported. The RBI emphasized that these relaxations will remain in force, allowing exporters to avail the facility in accordance with the stipulated conditions.
The new rules have already taken effect and will be applicable to all institutions involved in export financing, including commercial banks, cooperative banks, non-banking financial companies engaged in factoring, and all-India financial institutions. These measures are aimed at alleviating the financial burden on exporters and ensuring that businesses can operate smoothly despite global uncertainties. The RBI also stated that it will closely monitor the situation and take further steps if necessary.
