Rupee denominated external borrowing rules define permissible borrowers, non repatriation loans from NRIs/OCIs, and compliance obligations. Regulation 6 governs Rupee denominated external borrowings: Authorised Dealers and eligible resident entities may raise such ECBs from outside India ... Summary
Rupee denominated external borrowing rules define permissible borrowers, non repatriation loans from NRIs/OCIs, and compliance obligations.
Regulation 6 governs Rupee denominated external borrowings: Authorised Dealers and eligible resident entities may raise such ECBs from outside India subject to schedule conditions; trade credit for permitted imports may be obtained in Rupees from abroad; foreign investment as debt and cross border deposits must comply with respective FEMA regulations. Individuals may borrow in INR from NRIs or OCI relatives if received by inward remittance or via specified foreign currency accounts and held on a non repatriation basis with repayments to the lender's NRO account. Financial institutions may raise Rupee borrowings abroad for on lending with prior Government approval.
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