External Commercial Borrowings Policy -RBI eases ECB policy for Infrastructure Finance Companies (IFCs)-May 2010
May 11, 2010:
On a review of the policy, it has been decided to modify the extant ECB policy in respect of the Infrastructure Finance Companies (IFCs) i.e. Non Banking Financial Companies (NBFCs) categorised as IFCs by the Reserve Bank. As per the extant norms, IFCs have been permitted to avail of ECBs for on-lending to the infrastructure sector, as defined in the extant ECB policy, under the approval route.
As a measure of liberalisation of the existing procedures, it has been decided to permit the IFCs to avail of ECBs, including the outstanding ECBs, up to 50 per cent of their owned funds under the automatic route, subject to their compliance with the prudential guidelines already in place.
ECBs by IFCs above 50 per cent of their owned funds would require the approval of the Reserve Bank and will, therefore, be considered under the approval route. Designated Authorized Dealer banks should ensure compliance with the extant norms while certifying the ECB application both under the automatic and approval routes.
All the other aspects of ECB policy such as USD 500 million limit per company per financial year under the automatic route, eligible borrower, recognised lender, end-use, average maturity period, prepayment, refinancing of existing ECB and reporting arrangements remain unchanged.
RBI gives more power to banksfor ECB-February 2010 ...Click here
RBI relaxes the end-use of ECB policy-January 2010 ...Click here
RBI tightens some ECB norms for companies-Dec 2009 ...Click here
ECB policy relaxed for SEZ and NBFCs (June 2009) ...Click here
ECB Guidelines revision in January 2009 ...Click here
ECB Guidelines revision in October 2008 ...Click here
ECB Guidelines revision in September 2008 ...Click here
Special section on External Commercial Borrowings ...Click here
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