External Commercial Borrowings (ECB)

External Commercial Borrowings liberalisation permits corporate real sector ECB under automatic route, subject to maturity, cost and reporting rules.

The circular creates a two route framework for External Commercial Borrowings: an Automatic Route permitting corporates (excluding financial intermediaries) to raise ECB from recognised lenders for real sector and defined infrastructure investment subject to prescribed minimum average maturities, all in cost ceilings, end use prohibitions, security and parking rules; and an Approval Route for institutions and cases outside automatic limits, processed through authorised dealers and an RBI Empowered Committee. Reporting, loan registration prior to drawdown, disclosure on the RBI website, and extension of the regime to FCCBs are mandated.