Understanding meaning of External Commercial Borrowing (ECB)
In simple terms, External Commercial Borrowings (ECB) means commercial borrowings availed (in the form of bank loans, trade credits, and securitized instruments) from external sources (from abroad) with a minimum average maturity of three years. The borrowings under ECB take place in two channels namely automatic route and approved routes. Eligible borrowers like Corporate Importers,…
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Case Studies on Export Finance: Enabling Growth and Global Competitiveness for Indian Businesses
Export finance plays a pivotal role in enabling businesses—particularly small and medium enterprises (SMEs)—to participate effectively in global trade. It encompasses various financial instruments designed to support exporters in managing working capital, mitigating risks, and maintaining liquidity throughout the export cycle. The following case studies illustrate how Indian companies from different sectors leveraged export finance…
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Import Data Processing and Monitoring System (IDPMS): Enhancing Oversight in India’s Import Transactions
The Import Data Processing and Monitoring System (IDPMS) is a centralized online platform developed by the Reserve Bank of India (RBI) to facilitate effective tracking, monitoring, and regulation of import transactions. Introduced to strengthen transparency and foreign exchange compliance, IDPMS plays a pivotal role in aligning import payments with the actual receipt of goods in…
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Import Finance Facilities in India: Enabling Efficient International Trade
Import finance plays a critical role in supporting Indian businesses engaged in international trade by facilitating the purchase of goods and services from overseas suppliers. These financial instruments and services ensure liquidity, reduce transaction risks, and enhance the competitiveness of importers. A variety of import finance options are available in India to cater to diverse…
Read article Exchange and Trade Control Regulations for Importers in India
Importers in India are required to comply with a comprehensive set of guidelines governed by the Foreign Trade Policy, the Reserve Bank of India (RBI), and customs regulations. These measures ensure transparency, regulatory compliance, and the orderly conduct of foreign exchange and trade transactions. Key regulatory requirements are outlined below: 1. Import Export Code (IEC)…
Rescheduling or Restructuring of External Commercial Borrowings (ECB)
The Reserve Bank of India has relaxed rules for rescheduling/restructuring of ECBs by permitting an increase in the total cost of borrowing offshore. In suppression of earlier provisions, this year the banking regulator has delegated powers to the designated AD category-I banks to allow changes/modification in the draw-down and repayment schedules notwithstanding the average maturity period or…
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