External Commercial Borrowings expanded to treat infrastructure SPVs as financial institutions and permit bank guarantees for textile ECBs under approval. The ECB policy clarifies that Special Purpose Vehicles and Reserve Bank notified entities set up exclusively to finance infrastructure projects will be treated as financial institutions, with their ECB proposals considered under the Approval Route on a case by case basis. Banks are permitted to issue guarantees, standby letters of credit, letters of undertaking or letters of comfort for ECBs by textile companies for modernisation or expansion, subject to prudential norms and Approval Route consideration; the changes take immediate effect and corresponding regulatory amendments will follow.
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External Commercial Borrowings expanded to treat infrastructure SPVs as financial institutions and permit bank guarantees for textile ECBs under approval.
The ECB policy clarifies that Special Purpose Vehicles and Reserve Bank notified entities set up exclusively to finance infrastructure projects will be treated as financial institutions, with their ECB proposals considered under the Approval Route on a case by case basis. Banks are permitted to issue guarantees, standby letters of credit, letters of undertaking or letters of comfort for ECBs by textile companies for modernisation or expansion, subject to prudential norms and Approval Route consideration; the changes take immediate effect and corresponding regulatory amendments will follow.
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