RBI has introduced certain directions titled the Reserve Bank of India (Trade Relief Measures), Directions 2025 relating to trade relief measures (‘Directions’) to mitigate the burden of debt servicing caused by trade disruptions due to global headwinds, to support exporters and to ensure continuity of their viable businesses amidst ongoing trade challenges.

The Directions are applicable to: (i) Commercial Banks; (ii) Primary (Urban) Co-operative Banks, State Co-operative Banks and Central Co-operative Banks; (iii) Non-Banking Financial Companies (including Housing Finance Companies); (iv) All-India Financial Institutions; and (v) with limited applicability, Credit Information Companies (‘CICs’) (collectively to be referred as ‘REs’). The Directions lay out certain eligibility criteria for borrowers to avail the trade relief measures namely: (i) the borrower is engaged in exports relating to sectors specified in the Directions; (ii) the borrower had an outstanding export credit facility from an RE as of August 31, 2025; and (iii) the account of the borrower with all REs was classified as ‘standard’ as on August 31, 2025. REs are required to frame a policy for providing the relief measures specified in the Directions, which policy is to be disclosed in the public domain.

Key trade relief measures under the Directions are as follows:

i.    Moratorium/ Deferment: REs are permitted to grant a moratorium on payment of all instalments of principal and/or interest falling due between September 1, 2025 and December 31, 2025 for term loans (‘Moratorium Period’). In case of working capital facilities as cash credit or overdraft, REs may defer recovery of interest applicable during the Moratorium Period. Interest will accrue during this period in both cases on simple basis without compounding and the accumulated accrued interest will be converted into a funded interest term loan which will be repayable after March 31, 2026 but no later than September 30, 2026. REs are also allowed to reduce margins and reassess the working capital limits during the moratorium period;

ii.   Extension of Tenor for Export Credit: The repayment tenor for pre-shipment and post-shipment export credit has been extended to 450 days for credit disbursed till March 31, 2025. Exporters who availed packing credit facilities on or before August 31, 2025, but were unable to dispatch the goods, are permitted to liquidate such facilities through other legitimate sources.

iii.  Asset Classification: Moratorium Period will be excluded when calculating the number of days past-due for the purpose of asset classification under the Income Recognition, Asset Classification and Provisioning norms. Relief measures will not be treated as ‘restructuring’ nor as a measure resulting in asset classification downgrade. REs are required to report to CICs and CICs will ensure that the actions taken by REs pursuant to the Directions do not adversely impact the credit history of the borrower;

iv.   Provisioning: REs are required to create, by December 31, 2025, general provision of not less than five per cent of the total outstanding in borrower accounts availing these relief measures, with certain adjustments allowed later against specific provisioning requirements; and

v.    Disclosure Requirements: REs are required to develop a Management Information System (‘MIS’) which should include, inter alia, borrower-wise and credit facility-wise information regarding the relief granted and a report will be submitted on a fortnightly basis through RBI’s DAKSH platform.