External Commercial Borrowings (ECB) Policy – Revision

In consultation with Government of India, the Reserve Bank of India liberaised some aspects of ECB policy including policy on Rupee Denominated Bonds (RDB).
According to review of the policy, the eligible borrower companies in manufacturing sector can raise Extranal Commercial Borrowings up to USD 50 million or its equivalent with minimum average maturity period of one year instead of 3 years as per extant norms under Master Direction No. 5 dated January 01, 2016.
In case of Rupee Denominated Bonds (RDBs), hither to Indian banks could act as arranger and underwriter for RDBs issued overseas and also in case of underwriting an issue, but their holding couldnot be more than 5 per cent of the issue size after 6 months of issue. The Indian banks are now permitted to participate as arrangers/underwriters/arket makers/traders in RDB issued overseas subject to prudential norms.
All other norms under ECB remain unchanged .

Reference : RBI circular RBI/2018-19/48 A.P. (DIR Series) Circular No.9 dated September 19, 2018

Surendra Naik

Share
Published by
Surendra Naik

Recent Posts

Bank Holidays 2025: Karnataka State

“Under the explanation to Section 25 of the Negotiable Instruments Act, 1881 (Central Act 26…

15 hours ago

What are Suspense Account and rectification in Trial Balance?

When the trial balance does not tally due to the one-sided errors in the books,…

1 day ago

Explained: Reasons for disagreement of a Trial Balance

Errors in Trial Balance are mistakes made during the accounting process that cannot always be…

1 day ago

Bank Holidays 2025: GOA

 “Under the explanation to Section 25 of the Negotiable Instruments Act, 1881 (Central Act 26…

2 days ago

Reporting of Foreign Exchange Transactions to Trade Repository

The Reserve Bank of India is expanding reporting requirements for foreign exchange transactions. Starting February…

2 days ago

Bank Holidays 2025: State of Kerala

“Under the explanation to Section 25 of the Negotiable Instruments Act, 1881 (Central Act 26…

3 days ago