SCHEDULE III - Lending to borrowers outside India by a person resident in India [See Regulations 5(A)(i), 5(B)] - Foreign Exchange Management (Borrowing and Lending) Regulations, 2018

SCHEDULE III [See Regulations 5(A)(i), 5(B)] Lending to borrowers outside India by a person resident in India Eligible entities may extend External Commercial Lending (ECL) to borrowers outside India in accordance with the provisions contained in this Schedule. 1. An AD in India may extend External Commercial Lending (ECL) in foreign exchange to a foreign entity in which an Indian entity has made overseas direct investment in accordance with Foreign Exchange Management (Transfer or Issue of any Foreign Security) Regulations, 2004 , as amended from time to time. 2. Foreign branches of the Indian banks may extend foreign exchange loans in the normal course of their banking business outside India. 3. An eligible entity, as defined under Foreign Exchange (Transfer or Issue of any Foreign Security) Regulations, 2004 , notified vide Notification No.FEMA.120/RB-2004 dated July 7, 2004 , as amended from time to time, may lend in foreign exchange to a foreign entity in which it has made direct investment in accordance with the provisions under the said regulations. 4. A person resident in India may lend in foreign exchange out of funds held in his/her EEFC account, for trade related purposes to his/her overseas importer customer subject to such terms and conditions as stipulated by the Reserve Bank of India from time to time in consultation with Government of India. 5. Indian companies may grant loans in foreign exchange to the employees of their branches outside India for personal purposes provided that the loan shall be granted for personal purposes in accordance with the lender's Staff Welfare Scheme / Loan Rules and other terms and conditions as applicable to its staff resident in India and abroad.