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TMI BlogExternal Commercial Borrowings (ECB) Policy – Revised frameworkX X X X Extracts X X X X X X X X Extracts X X X X ..... nd the macroeconomic developments, by bringing more resident entities as eligible borrowers, recognizing more entities as lenders, expanding end-uses, etc., besides periodically reviewing the All-in-Cost (AIC) for such borrowings. Special carve outs were also made to take care of sector specific needs. 2. As sufficient time has passed since the extant ECB framework was operationalised, a need was felt to undertake a review based on the experience gained in administering the ECB regime and the current financing ecosystem which, inter alia, allows issuance of Indian Rupee (INR) denominated bonds overseas by a wide set of borrowers. Accordingly, a draft of the proposed ECB framework was placed in the public domain on September 23, 2015 for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted ECB with MAM of 10 years. Track III : Indian Rupee denominated ECB with MAM of 3/5 years. 5. The guidelines for the revised ECB framework specifying the parameters and other terms conditions are set out in the Annex to this Circular. It may be noted that these parameters will apply in totality and not on a standalone basis. Criteria for raising ECB under both the routes, viz., the automatic route where entities do not require the prior approval of the Reserve Bank for raising ECB and the approval route where entities can raise ECB only with the prior approval of the Reserve Bank are also given in the Annex. 6. The primary responsibility for ensuring that the ECB is in compliance with the applicable guidelines is that of the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sued by the Department of Banking Regulation (DBR) of the Reserve Bank. Further, overseas branches/subsidiaries of Indian banks will not be permitted as lenders under Track II and III. 10. The new ECB framework will come into force from the date of publication, in the Official Gazette, of the relative Regulations issued under FEMA. These Regulations are being issued separately. 11. Authorised Dealer banks may bring the contents of this Circular to the notice of their constituents and customers. 12. The directions contained in this Circular has been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions /approvals, if any, required under any othe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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