RBI declares aid measures for exporters, permits banks and NBFCs to present them moratorium

The Reserve Financial institution of India has allowed banks and finance firms to present a moratorium on loans for a restricted interval. On Friday, the banking regulator introduced aid measures for exporters below varied sectors together with leather-based, attire, gem and jewellery and chemical compounds. As a part of aid measures, a borrower who has export credit score facility from a regulated entity as on August 31, 2025 and categorized as normal shall be eligible for varied aid measures. These measures embody moratorium on all repayments, ranging from September 1, 2025 until December 31, 2025. RBI mentioned that these measures are taken “to mitigating the burden of debt servicing caused by commerce disruptions attributable to international headwinds and to make sure the continuity of viable companies.” The aid measure will come into impact instantly.

The final time RBI has allowed banks to present an analogous moratorium was in the course of the pandemic in 2021.

Beneath the scheme, the curiosity payable throughout this era shall be transformed into funded curiosity time period mortgage which shall be repayable by the exporter after March 31, 2026 however not later than September 30, 2026.

The lenders may recalculate the drawing energy by lowering the margins from working capital borrowings. Additional, any pre-shipment or put up cargo credit score disbursed until March 31, 2026 could be repaid inside an prolonged credit score interval of 450 days. Furthermore, any packing credit score facility availed by exporters earlier than August 31, 2025 could be repaid by means of alternate sources.

All these aid measures if availed by debtors is not going to result in classifying it as NPA or adversely affect the credit score historical past of debtors.Banks who prolong these aid measures shall be required to provision 5% of the full excellent quantity of such loans. “The proposed regulatory measures coupled with the credit score assure scheme for exporters introduced by the federal government may present liquidity aid to exporters and assist them experience out the near-term strain on money flows due to deferment of orders or funds. Nonetheless, we must monitor the extent of moratorium or deferment availed by the exporters,” mentioned Anil Gupta, senior vp & Co Group Head – Monetary Sector Scores, ICRA.

“A big quantum of debtors availing both of aid measures may probably improve the uncertainty on asset high quality for the lenders. A 5 p.c provisioning on such loans, the place lenders have given a aid to exporters, may additionally lead to a rise in provisions, however unlikely to have a fabric affect on near-term profitability.”

RBI additionally said that regulated entities ought to develop an MIS on the reliefs supplied to its debtors which shall embody inter alia borrower-wise and credit-facility sensible data concerning the character and quantity of aid granted.