Reserve Bank of India (Trade Relief Measures) Directions, 2026
Current · Source: Reserve Bank of India · RBI/2025-26/263 · issued 31 Mar 2026 · ~1 min read
Quick answerRBI issues directions to provide relief to exporters by extending credit tenor and allowing liquidation of packing credit facilities.
The rule, in the simplest words
Banks can give exporters up to 450 days (about 15 months) to repay loans given before or after shipping goods, but only for loans given before June 30, 2026.
If an exporter took a loan to make goods but couldn't ship them, the bank can let them pay back that loan using money from selling those goods in India or from a different export order.
These rules help exporters who are struggling because of the West Asia crisis (a big problem in that region).
How it plays out — a real example
A forex & trade-finance officer in Surat has an exporter client who took a packing credit (loan to make goods) for a shipment to West Asia, but the crisis stopped the dispatch. The officer now allows the exporter to sell those goods in India and use that money to repay the loan, following the new RBI rule.
What changed
RBI has extended the credit period for pre-shipment and post-shipment export credit to up to 450 days for credit disbursed till June 30, 2026.
Regulated entities can allow liquidation of packing credit facilities from alternate sources.
These directions are applicable to commercial banks, primary co-operative banks, state co-operative banks, central co-operative banks, and non-banking financial companies – factors.
What it means for you
This will provide relief to exporters who are facing difficulties in servicing their debt due to the West Asian crisis.
It will also help in ensuring the continuity of viable businesses.
Regulated entities will need to review their existing export financing business and make necessary adjustments.
What you must do
Review existing export financing business and make necessary adjustments.
Extend credit period for pre-shipment and post-shipment export credit to 450 days.
Allow liquidation of packing credit facilities from alternate sources.
Who it affects
Exporters, Commercial banks, Primary (Urban) Co-operative banks, State Co-operative banks, Central Co-operative banks, Non-Banking Financial Companies – Factors
❓ Common questions
What is the new credit period for pre-shipment and post-shipment export credit?
The new credit period is up to 450 days.
Can regulated entities allow liquidation of packing credit facilities?
Yes, from alternate sources such as domestic sale proceeds or substitution of contract with proceeds of another export order.
📜 Read the original circular — full text as issued by RBI
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
1. 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.
2. 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
3. These Directions shall be called the Reserve Bank of India (Trade Relief Measures) Directions, 2026.
4. These Directions shall come into force immediately.
Applicability
5. 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
6. 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.
7. 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
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2025-26/263 · issued 31 Mar 2026. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (Exporters, Commercial banks, Primary (Urban) Co-operative banks, State Co-operative banks, Central Co-operative banks, Non-Banking Financial Companies – Factors), your first concrete step on “Reserve Bank of India (Trade Relief Measures) Directions, 2026” is: “Review existing export financing business and make necessary adjustments.” (RBI issued this 31 Mar 2026).
Circular: RBI/2025-26/263 -- Reserve Bank of India (Trade Relief Measures) Directions, 2026
Issued: 31 Mar 2026
Action required: Review existing export financing business and make necessary adjustments.
Action required: Extend credit period for pre-shipment and post-shipment export credit to 450 days.
Action required: Allow liquidation of packing credit facilities from alternate sources.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 02 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13355&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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