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
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.