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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Understanding the Export Data Processing and Monitoring System (EDPMS)
The Export Data Processing and Monitoring System (EDPMS) is an online platform developed by the Reserve Bank of India (RBI) in 2014 to streamline, track, and monitor export transactions in India. It serves as a centralized system, integrating information from banks and customs authorities to ensure effective oversight of export shipments and the corresponding inward…
Read articleRBI relaxes rules on External Commercial Borrowings (ECB)
The Reserve Bank of India relaxed rules for rescheduling/restructuring of ECBs by permitting an increase in the total cost of borrowing offshore. In suppression of earlier provisions, 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 changes…
Read articleRelaxation of External Commercial Borrowings (ECB) in Indian Rupees
With a view to providing greater flexibility for structuring of External Commercial Borrowings (ECB) arrangements, it has been decided by RBI that all recognised non-resident ECB lenders may extend loans in Indian Rupees by mobilising Indian Rupees through swaps undertaken with an Authorised Dealer Category I bank in India. At present all eligible borrowers are…
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Updated guidelines on raising loans through External Commercial Borrowing (ECB)
The revised guidelines on External Commercial Borrowing are as per the updated circular of RBI as of December 22, 2023. 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.…
Security for External Commercial Borrowings (ECB)
The extant ECB guidelines allow the local borrower to offer security to the overseas lender / supplier for securing ECB. According to the latest directions of RBI, AD Category-I banks may allow creation of charge on immovable assets, movable assets, financial securities and issue of corporate and / or personal guarantees in favour of overseas…
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