RBI Notifies Reserve Bank Of India (Trade Relief Measures) Directions, 2025

RBI through notification no. RBI/2025-26/96 dated 14.11.2025 notified the Reserve Bank of India (Trade Relief Measures) Directions, 2025 ("TRM Directions"). The TRM Directions have come into force with immediate effect from 14.11.2025. The salient features of the TRM Directions are as follows:

i. Applicability: These Directions shall be applicable to commercial banks, Primary (Urban) Cooperative Banks, State Cooperative Banks, Central Cooperative Banks, Non-Banking Financial Companies ("NBFCs") including housing finance companies, All-India Financial Institutions, and Credit Information Companies ("CICs").

ii. Eligibility Criteria:

a. A borrower shall be eligible upon satisfying the following conditions: (i) The borrower is engaged in exports relating to sectors particularly specified; (ii) The borrower had an outstanding export credit facility from a RE as on 31.08.2025; and (iii) The borrower's account(s) with all REs was/were classified as 'Standard' as on 31.08.2025.

b. REs, other than those which sanctioned the export credit facility, may rely on certification from the concerned RE(s) to verify eligibility of having outstanding export credit facility from a RE as on 31.08.2025.

iii. Moratorium/Deferment: In respect of term loans, a RE may grant a moratorium on payment of instalments (principal and/or interest) falling due between 01.09.2025 and 31.12.2025 ("Effective Period"). In respect of cash credit/ overdraft ("CC/OD") facilities, a RE may defer recovery of interest applied during the Effective Period. Interest shall continue to accrue during the moratorium/ deferment period and shall be applied on simple interest basis without compounding. The accumulated accrued interest may be converted into a funded interest term loan repayable in one or more instalments after 31.03.2026 but not later than 30.09.2026. In respect of working capital facilities, a RE may recalculate drawing power by reducing margins and/or reassessing limits during the Effective Period. Any review after the Effective Period shall be based on regular assessments.

iv. Extension of Tenor for Export Credit: A RE eligible to undertake export financing may permit an enhanced credit period of up to 450 days for preshipment and post-shipment export credit disbursed till 31.03.2026. In respect of packing credit facilities availed on or before 31.08.2025 where dispatch of goods could not occur, liquidation may be permitted from legitimate alternate sources including domestic sale proceeds or substituted export orders.

v. Asset Classification: The moratorium/ deferment period shall be excluded while calculating days past due for asset classification under applicable IRACP norms. Grant of moratorium/ deferment and recalculation of drawing power under the TRM Directions shall not be treated as restructuring and shall not result in asset classification downgrade. Post expiry of the moratorium/ deferment period, asset classification shall follow extant IRACP norms. REs shall report to CICs as per extant instructions. CICs shall ensure that actions taken under the TRM Directions do not adversely impact a borrower's credit history.

vi. Provisioning: In respect of eligible borrower accounts which were in default but classified as 'Standard' as on 31.08.2025, and where relief has been granted under the TRM Directions, a RE shall make a general provision of not less than 5 per cent of the total outstanding by 31.12.2025. The general provision may be adjusted against specific provisioning requirements for slippages from these accounts. Residual provisions at the end of FY 2025-26 shall be written back or adjusted against provisioning requirements for other borrower accounts by 30.06.2026. The general provisions shall not be reckoned for arriving at net NPAs and shall not be netted from gross advances until adjusted.

vii. Disclosure Requirements: A RE shall develop an MIS capturing borrower-wise and facility-wise details of the nature and amount of relief granted. The RE shall submit fortnightly reports in the format to be hosted by RBI on its DAKSH platform.

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