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RBI Export Relief Measures Amid 50% US Tariff

17 November 20251 min read
ECONOMYRBI Export ReliefMeasures Amid50% US Tariff17 November 2025safalsetu.com

Why in the news

A 50% US tariff from 27 August 2025 strained exporters’ cash flow, so RBI eased timelines and credit.

Key facts

  • Route: FEMA Export of Goods & Services (Second Amendment) Regulations, 2025, notified 13 November.
  • Advance payments from overseas buyers: 3 years instead of 1.
  • Interest accrues as simple interest and may become a separate loan repaid April-September 2026.
  • Banks may cut margins and recompute drawing power; credit repayable within 450 days; packing credit may be repaid from domestic sales.

Significance

  • Liquidity relief and support for export competitiveness.

Test yourself

1. RBI extended the export proceeds realisation period for exporters to how many months?

The period went from 9 months to 15 months.

2. What moratorium period did RBI allow on export loan instalments in its tariff relief?

A 4-month moratorium covering September-December 2025 was allowed.

3. What general provision must banks hold on accounts using RBI's export relief relaxations?

Banks must maintain a 5% general provision on such accounts.

This topic is part of Daily Current Affairs 15 November 2025 (17 topics).

All topics of the dayDay quizNovember 2025

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