The Reserve Bank of India (RBI) on Tuesday extended the enhanced export credit period of up to 450 days for both pre-shipment and post-shipment finance for disbursals made until June 30, citing ongoing logistical challenges linked to the West Asia crisis.
The RBI had initially introduced this measure in November 2025 in response to disruptions triggered by the United States tariff conflicts. Since then, it has received multiple representations from stakeholders highlighting difficulties in meeting timelines for the realisation of export proceeds due to geopolitical uncertainties and supply chain constraints.
In its latest notification, the RBI stated that the enhanced export credit period—earlier applicable for disbursals up to March 31, 2026—will now be extended to cover all disbursals made until June 30, 2026.
Also read: Rahman is brand ambassador of Yamaha Music India
The regulator also clarified that the previous relaxation allowing exporters more time to realise and repatriate the full value of exports will remain unchanged. Under this provision, the time limit has been extended from nine months to 15 months from the date of export for goods, software, and services.
“Given the continuing logistical disruptions due to the West Asia crisis, it has been decided to extend the enhanced export credit period of 450 days for all disbursals made till June 30, 2026,” the RBI said.
The directions have come into immediate effect and will apply to all regulated entities involved in export financing, including commercial banks, co-operative banks, non-banking financial companies engaged in factoring, and all-India financial institutions.
According to the RBI, these measures are intended to ease the burden of debt servicing caused by geopolitical tensions while ensuring the continuity of viable export-oriented businesses. The central bank added that it will continue to closely monitor developments and take further action as needed.
Follow us
