External Commercial Borrowings for NGOs in microfinance permitted under automatic route with strict due diligence and compliance requirements. Access to External Commercial Borrowings is permitted for NGOs engaged in micro finance under the Automatic Route, provided the NGO has a three year satisfactory borrowing relationship with an authorised dealer and a due diligence certificate on the governing body. ECB proceeds must be used only for lending to self help groups, micro credit, bona fide micro finance activities and capacity building. Lenders must be recognised international institutions or overseas entities/individuals meeting due diligence and KYC safeguards, and all standard ECB parameters and reporting obligations, including hedging of forex exposure and loan registration, must be complied with.
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 NGOs in microfinance permitted under automatic route with strict due diligence and compliance requirements.
Access to External Commercial Borrowings is permitted for NGOs engaged in micro finance under the Automatic Route, provided the NGO has a three year satisfactory borrowing relationship with an authorised dealer and a due diligence certificate on the governing body. ECB proceeds must be used only for lending to self help groups, micro credit, bona fide micro finance activities and capacity building. Lenders must be recognised international institutions or overseas entities/individuals meeting due diligence and KYC safeguards, and all standard ECB parameters and reporting obligations, including hedging of forex exposure and loan registration, must be complied with.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
