External Commercial Borrowings for rupee loan repayment allowed under approval route with eligibility and end use safeguards. External Commercial Borrowings may be used, via the approval route, for repayment of outstanding Rupee loans used for capital expenditure and for fresh Rupee capital expenditure by eligible manufacturing and infrastructure companies that are consistent foreign exchange earners and not on the RBI default/caution lists. The overall facility and per company limits are tied to export earnings; drawdown must occur promptly after obtaining the Loan Registration Number. Applications in Form ECB require statutory auditor certification and lender/AD certification of outstanding Rupee loans. Designated AD Category I banks shall monitor end use, prevent sourcing of foreign exchange for repayment from Indian markets, and note that Indian banks cannot provide guarantees; all ECB conditions remain applicable.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
External Commercial Borrowings for rupee loan repayment allowed under approval route with eligibility and end use safeguards.
External Commercial Borrowings may be used, via the approval route, for repayment of outstanding Rupee loans used for capital expenditure and for fresh Rupee capital expenditure by eligible manufacturing and infrastructure companies that are consistent foreign exchange earners and not on the RBI default/caution lists. The overall facility and per company limits are tied to export earnings; drawdown must occur promptly after obtaining the Loan Registration Number. Applications in Form ECB require statutory auditor certification and lender/AD certification of outstanding Rupee loans. Designated AD Category I banks shall monitor end use, prevent sourcing of foreign exchange for repayment from Indian markets, and note that Indian banks cannot provide guarantees; all ECB conditions remain applicable.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
