Foreign exchange borrowing definitions clarify ECB, external commercial lending, trade credit, borrowing costs, control and real estate business exclusions.

Regulation 2 establishes definitions for foreign exchange borrowing and lending, including Authorised Dealers, Indian entities, external commercial borrowing, external commercial lending and trade credit. ECB covers borrowing by an eligible borrower from a recognised lender under the applicable schedule; ECL covers resident lending to non-residents; and trade credit includes suppliers' and buyers' credit for permissible imports. It also defines arm's length basis, control, benchmark rate, cost of borrowing, net worth and real estate business, with specified exclusions for industrial, infrastructure, construction-development, own-use property and broking activities.

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