BCC Seeks Relief Measures From RBI As West Asia Crisis Hits Exporters

ENA Sectors 2026-03-18 14:36:58 New Delhi, Mar 18 (KNN) The Bharat Chamber of Commerce (BCC) has urged the Reserve Bank of India (RBI) to introduce supportive banking measures to ease financial stress on exporters affected by disruptions in global logistics due to ongoing tensions in West Asia. In a letter to RBI Governor Sanjay Malhotra, the chamber noted that West Asia is not only a key export destination but also a crucial transhipment hub for shipments to Europe and Africa. The ongoing situation has led to diversion of shipping routes, port congestion, higher freight and insurance costs, and extended transit periods, straining working capital cycles and liquidity positions of exporters, PTI reported, citing the letter. Call for Enhanced Credit Support The BCC has recommended that banks adopt a more supportive credit approach by enhancing working capital limits, providing ad-hoc credit facilities and extending the tenure of pre- and post-shipment export credit, while also seeking greater flexibility in the rollover of packing credit and the extension of due dates for export bills. Moratorium and Regulatory Relief Sought The chamber has requested an extension of the moratorium on loan repayments for export sectors through the first and second quarters of 2026. Additionally, it called for regulatory relief to protect exporters from penal interest and loss of benefits under the Interest Equalisation Scheme in cases where payment delays are caused by shipping disruptions beyond their control. Easing Transit Norms To address delays in shipment timelines, the BCC proposed extending the permissible transit period for usance export bills from the current normal transit period plus 25 days to plus 60 days, particularly to support MSME exporters. It also urged greater clarity and flexibility in bill discounting and negotiation facilities to ensure continuity in export financing. Impact on Vulnerable Sectors BCC President Naresh Pachisia highlighted that exporters dealing in perishable goods and seasonal fashion products are particularly vulnerable, as delays could result in loss of cargo value if market windows are missed. (KNN Bureau) 45501 https://knnindia.co.in/news/newsdetails/sectors/bcc-seeks-relief-measures-from-rbi-as-west-asia-crisis-hits-exporters 2026-03-18 14:36:58 knnindia.co.in BCC Seeks Relief Measures From RBI As West Asia Crisis Hits Exporters