ECB limit increase for NBFC IFCs: higher automatic borrowing cap with approvals required beyond the cap and reduced hedging. The circular raises the permitted ECB ceiling for NBFC IFCs under the automatic route as a proportion of owned funds while borrowings beyond that ceiling require Reserve Bank approval under the approval route. End use remains confined to on lending to infrastructure and other ECB conditions are unchanged. The currency risk hedging obligation for NBFC IFCs is reduced to a lower specified proportion of exposure. Authorised Dealer Category I banks must certify compliance and continue to certify leverage ratios for approval route proposals. The amendments are effective immediately under FEMA authority.
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.
ECB limit increase for NBFC IFCs: higher automatic borrowing cap with approvals required beyond the cap and reduced hedging.
The circular raises the permitted ECB ceiling for NBFC IFCs under the automatic route as a proportion of owned funds while borrowings beyond that ceiling require Reserve Bank approval under the approval route. End use remains confined to on lending to infrastructure and other ECB conditions are unchanged. The currency risk hedging obligation for NBFC IFCs is reduced to a lower specified proportion of exposure. Authorised Dealer Category I banks must certify compliance and continue to certify leverage ratios for approval route proposals. The amendments are effective immediately under FEMA authority.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
