Reserve Bank of India Trade Relief Measures Directions 2026
Summary
RBI issued Trade Relief Measures Directions 2026 (RBI/2025-26/263) effective March 31, 2026, extending export credit tenor to up to 450 days for pre-shipment and post-shipment financing. The directions allow regulated entities to permit enhanced credit periods and permit liquidation of packing credit facilities from alternate sources for exporters impacted by the West Asian crisis.
What changed
The RBI has issued new Directions extending the maximum tenor for export credit (pre-shipment and post-shipment) from existing limits to 450 days for credit disbursed until June 30, 2026. Additionally, regulated entities may permit liquidation of existing packing credit facilities from alternate legitimate sources, including domestic sale proceeds or substitution with proceeds from another export order, where original dispatch was prevented by geopolitical disruptions.
Affected regulated entities—including commercial banks, cooperative banks, NBFC-Factors, and All-India Financial Institutions—should immediately review their export credit portfolios to identify facilities eligible for the extended tenor. Credit disbursed by June 30, 2026 qualifies for the enhanced 450-day period. Existing packing credit holders unable to dispatch goods may now apply for liquidation through alternate sources. These Directions are issued under statutory powers and are binding on all eligible regulated entities undertaking export financing business.
What to do next
- Review export credit portfolios to identify facilities eligible for 450-day extended tenor
- Update internal credit systems and lending policies to accommodate enhanced export credit periods
- Identify existing packing credit facilities with dispatch delays and assess eligibility for alternate liquidation sources
Source document (simplified)
Notifications
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| Reserve Bank of India (Trade Relief Measures) Directions, 2026 | |
| | RBI/2025-26/263
DOR.STR.REC.No.455/21.04.048/2025-26
March 31, 2026
Reserve Bank of India (Trade Relief Measures) Directions, 2026
Reserve Bank is statutorily mandated to operate the credit system of the country to its advantage. In this endeavour, and with a view to mitigating the burden of debt servicing brought about by geopolitical tensions caused by West Asian crisis and to ensure the continuity of viable businesses, Reserve Bank being satisfied that it is necessary and expedient in the public interest to do so, issues these Directions hereinafter specified.
These Directions are being issued in exercise of powers conferred by sections 21, 35A and 56 of the Banking Regulation Act, 1949, sections 45JA, 45L and 45M of the Reserve Bank of India Act, 1934, and section 6 of the Factoring Regulation Act, 2011.
Short Title and Commencement
These Directions shall be called the Reserve Bank of India (Trade Relief Measures) Directions, 2026.
These Directions shall come into force immediately.
Applicability
These Directions shall be applicable to the following regulated entities (REs) eligible to undertake export financing business:
- Commercial Banks
- Primary (Urban) Co-operative Banks, State Co-operative Banks and Central Co-operative Banks
- Non-Banking Financial Companies – Factors
- All-India Financial Institutions Extension of tenor for Export Credit
A RE may permit an enhanced credit period of up to 450 days for pre-shipment and post-shipment export credit disbursed till June 30, 2026.
In respect of packing credit facilities already availed by exporters on or before the date of issuance of these Directions, where dispatch of goods could not take place, a RE may allow liquidation of such facilities from any legitimate alternate sources, including domestic sale proceeds of such goods or substitution of contract with proceeds of another export order.
Yours faithfully,
(Vaibhav Chaturvedi)
Chief General Manager | | RBI/2025-26/263
DOR.STR.REC.No.455/21.04.048/2025-26
March 31, 2026
Reserve Bank of India (Trade Relief Measures) Directions, 2026
Reserve Bank is statutorily mandated to operate the credit system of the country to its advantage. In this endeavour, and with a view to mitigating the burden of debt servicing brought about by geopolitical tensions caused by West Asian crisis and to ensure the continuity of viable businesses, Reserve Bank being satisfied that it is necessary and expedient in the public interest to do so, issues these Directions hereinafter specified.
These Directions are being issued in exercise of powers conferred by sections 21, 35A and 56 of the Banking Regulation Act, 1949, sections 45JA, 45L and 45M of the Reserve Bank of India Act, 1934, and section 6 of the Factoring Regulation Act, 2011.
Short Title and Commencement
These Directions shall be called the Reserve Bank of India (Trade Relief Measures) Directions, 2026.
These Directions shall come into force immediately.
Applicability
These Directions shall be applicable to the following regulated entities (REs) eligible to undertake export financing business:
- Commercial Banks
- Primary (Urban) Co-operative Banks, State Co-operative Banks and Central Co-operative Banks
- Non-Banking Financial Companies – Factors
- All-India Financial Institutions Extension of tenor for Export Credit
A RE may permit an enhanced credit period of up to 450 days for pre-shipment and post-shipment export credit disbursed till June 30, 2026.
In respect of packing credit facilities already availed by exporters on or before the date of issuance of these Directions, where dispatch of goods could not take place, a RE may allow liquidation of such facilities from any legitimate alternate sources, including domestic sale proceeds of such goods or substitution of contract with proceeds of another export order.
Yours faithfully,
(Vaibhav Chaturvedi)
Chief General Manager |
| RBI/2025-26/263
DOR.STR.REC.No.455/21.04.048/2025-26
March 31, 2026
Reserve Bank of India (Trade Relief Measures) Directions, 2026
Reserve Bank is statutorily mandated to operate the credit system of the country to its advantage. In this endeavour, and with a view to mitigating the burden of debt servicing brought about by geopolitical tensions caused by West Asian crisis and to ensure the continuity of viable businesses, Reserve Bank being satisfied that it is necessary and expedient in the public interest to do so, issues these Directions hereinafter specified.
These Directions are being issued in exercise of powers conferred by sections 21, 35A and 56 of the Banking Regulation Act, 1949, sections 45JA, 45L and 45M of the Reserve Bank of India Act, 1934, and section 6 of the Factoring Regulation Act, 2011.
Short Title and Commencement
These Directions shall be called the Reserve Bank of India (Trade Relief Measures) Directions, 2026.
These Directions shall come into force immediately.
Applicability
These Directions shall be applicable to the following regulated entities (REs) eligible to undertake export financing business:
- Commercial Banks
- Primary (Urban) Co-operative Banks, State Co-operative Banks and Central Co-operative Banks
- Non-Banking Financial Companies – Factors
- All-India Financial Institutions Extension of tenor for Export Credit
A RE may permit an enhanced credit period of up to 450 days for pre-shipment and post-shipment export credit disbursed till June 30, 2026.
In respect of packing credit facilities already availed by exporters on or before the date of issuance of these Directions, where dispatch of goods could not take place, a RE may allow liquidation of such facilities from any legitimate alternate sources, including domestic sale proceeds of such goods or substitution of contract with proceeds of another export order.
Yours faithfully,
(Vaibhav Chaturvedi)
Chief General Manager | |
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