To ease debt repayment pressures on certain exporters hit by trade tensions with the US, which has imposed elevated tariffs of 50 per cent on Indian shipments, the Reserve Bank of India (RBI) has announced a set of relief measures.These include a four-month moratorium on loans and interest payments from September 1, 2025 to December 31, 2025, an extension of export credit tenure to 450 days, and relaxed asset classification norms which would ease payment burden.The RBI’s relief package comes soon after the government approved a six-year Export Promotion Mission with an outlay of Rs 25,060 crore. Together, the measures are expected to provide liquidity support to exporters and help them manage any short-term cash flow disruptions that may arise from delayed orders and payments.RBI’s relief measures* Moratorium on debt repayments: The RBI said that its regulated entities — commercial banks, non-banking financial companies and all-India financial institutions — should grant a moratorium on or deferment of payment of all term loans and recovery of interest on working capital loans falling due between September 1, 2025, and December 31, 2025.During the moratorium period, interest will continue to accrue but on a simple interest basis. The accrued interest during the moratorium will be converted into a funded interest term loan, which can be repaid between March 31, 2026 and September 30, 2026.In case of working capital facilities, the RBI said that regulated entities can recalculate “drawing power” by reducing the margins during the moratorium period.* Relaxation in export credit repayment: The RBI said that all regulated entities eligible to undertake export financing business may permit an enhanced credit period of up to 450 days (from 270 days earlier) for pre-shipment and post-shipment export credit disbursed till March 31, 2026.Story continues below this adFor packing credit facilities that have already been availed by exporters by August 31, 2025, where dispatch of goods could not take place, lenders 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. Packing credit refers to a loan for financing purchase, processing, manufacturing, or packing of goods before shipment, and can be used for working capital.* Relaxed asset classification norms: The RBI said that the moratorium period should be excluded by lenders while calculating the number of days past due (DPD) for asset classification under the applicable Income Recognition, Asset Classification and Provisioning (IRACP) norms.DPD refers to the number of days a loan or credit card payment is past its due date, indicating potential defaults. The grant of moratorium will not be treated as an event of restructuring and will not result in asset classification downgrade. The RBI directed Credit Information Companies (CICs) to ensure that actions taken by lenders should not adversely impact borrowers’ credit history.* Provisioning: The RBI said banks will have to make a general provision of 5 per cent against the accounts which were in default but classified as “standard” as on August 31, 2025, and where trade relief measures have been extended, by December 31, 2025.Story continues below this ad* Amendment in FEMA regulations: The RBI also tweaked the Foreign Exchange Management Act (FEMA) regulation on realisation and repatriation of proceeds of export of goods, software, services and advance payment against exports. The exporters will now have 15 months instead of nine months for realisation and repatriation of full export value of goods, software, services exported from India. The time period for shipment of goods has been increased from one year to three years from the date of receipt of advance payment.Why measures were introducedThe RBI’s relief measures come in the wake of the US imposing steep 50 per cent tariffs — the highest on any country globally — on Indian exports effective August 27. Higher tariffs, primarily on account of the penalty duty of 25 per cent for purchasing Russian oil, has impacted bilateral trade, with India’s shipments to the US falling 12 per cent in September.Trade disruptions have led to delayed payments and an increase in operational costs, tightening liquidity conditions for domestic exporters. Many exporters are facing challenges in servicing their debt, which has raised concerns over potential defaults.How exporters are likely to benefitThe RBI’s relief measures are expected to ease short-term liquidity pressures and help exporters meet any payment obligations.Story continues below this adThe regulator said that its trade relief measures are aimed at “mitigating the burden of debt servicing brought about by trade disruptions caused by global headwinds and to ensure the continuity of viable businesses”.“The proposed regulatory measures coupled with the credit guarantee scheme for exporters announced by Government of India could provide liquidity relief to exporters and help them ride out the near-term pressure on cashflows because of deferment of orders or payments,” said Anil Gupta, Senior Vice President & Co Group Head – Financial Sector Ratings, ICRA Ltd.The RBI’s move comes even as India and the US are negotiating a bilateral trade agreement. Earlier this week, US President Donald Trump said the US will bring down tariffs on India, and that Washington is “pretty close” to reaching a “fair trade deal” with New Delhi.Sectors and articles such as organic chemicals, plastic, rubber, leather, carpets, apparel and clothing accessories, footwear, articles of iron or steel, nuclear reactors, boilers, electrical machinery and equipment and parts, aluminium, furniture, bedding, mattresses, mattress supports and cushions are eligible for the RBI’s trade relief measures.Story continues below this adOn Friday, the RBI said that the trade relief package has come into effect immediately. This means that the measures are already in place.Impact on banksAccording to ICRA Ltd’s Gupta, there is a need to monitor the extent of moratorium or deferment availed by exporters. “A large quantum of borrowers availing either of relief measures could potentially increase the uncertainty on asset quality for the lenders,” he said.A five percent provisioning on such loans, where lenders have given a relief to exporters, could also result in an increase in provisions, but unlikely to have a material impact on near-term profitability, he said.