FIEO praised RBI for extending export realisation and shipment periods, which offer exporters better credit and liquidity management.
The Federation of Indian Export Organisations (FIEO) has welcomed the Reserve Bank of India’s decision to extend the extension of export realisation period from nine months to fifteen months and extend in period of shipment of goods, on receipt of advance payment against exports, from one year to three years.
RBI has eased the burden on debt repayments on specific impacted sectors through moratorium or deferment of payment, and also provided the permission to lenders to recalculate ‘drawing power’ in working capital facilities.
RBI has also relaxed repayment of export credit period, and lenders are allowed to liquidate packing credit facilities availed on or before August 31, 2025, where dispatch of goods could not take place, through any legitimate alternate sources.
S C Ralhan, President, FIEO, said, “The extension will extend great relief to the export trade. Exporters will be able to offer a better credit period to the foreign buyers. Trade-related compliance will get strengthened due to this pro-trade development. Indian exporters will get sufficient time for the shipment of goods on receipt of advance payment. Relief measures related to term loans and packing credit will enable exporters to manage their liquidity suitably.
He further added that this extension may be in line with several other economies, which will ensure a level playing field to Indian exporters.
FIEO assured that it will continue working closely with the Reserve Bank of India to ensure that exporters can augment their exports through the due support from the banking regulator of the country.
SOURCE – PR
