External Commercial Borrowings automatic route permits streamlined ECB approvals with lender recognition and mandatory reporting obligations. The circular establishes an automatic route for qualifying ECBs and refinancing within a prescribed ceiling, allowing registered legal entities (including proprietorships/partnerships) to raise funds from internationally recognised lenders through a reputed merchant banker without prior Ministry/Reserve Bank approval. Corporates must submit three signed copies of the loan agreement via an authorised dealer to the Reserve Bank Regional Office, which will allot a loan identification number; primary responsibility for compliance rests with the corporate. Draw-downs are permitted without prior permission but quarterly returns are required; prepayment and foreign currency account use remain subject to Reserve Bank approval.
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 automatic route permits streamlined ECB approvals with lender recognition and mandatory reporting obligations.
The circular establishes an automatic route for qualifying ECBs and refinancing within a prescribed ceiling, allowing registered legal entities (including proprietorships/partnerships) to raise funds from internationally recognised lenders through a reputed merchant banker without prior Ministry/Reserve Bank approval. Corporates must submit three signed copies of the loan agreement via an authorised dealer to the Reserve Bank Regional Office, which will allot a loan identification number; primary responsibility for compliance rests with the corporate. Draw-downs are permitted without prior permission but quarterly returns are required; prepayment and foreign currency account use remain subject to Reserve Bank approval.
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