Recognition of Overseas Corporate Bodies as lenders prohibited; banks must not treat derecognised OCBs as eligible ECB lenders. OCBs were derecognised as an eligible class of investor and therefore cannot be treated as recognised lenders for external commercial borrowing; borrowings from or loans to OCBs are impermissible, outstanding facilities were not to be renewed and no interest accrues after the due date; Authorised Dealer banks must notify constituents and ensure compliance with this statutory direction.
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.
Recognition of Overseas Corporate Bodies as lenders prohibited; banks must not treat derecognised OCBs as eligible ECB lenders.
OCBs were derecognised as an eligible class of investor and therefore cannot be treated as recognised lenders for external commercial borrowing; borrowings from or loans to OCBs are impermissible, outstanding facilities were not to be renewed and no interest accrues after the due date; Authorised Dealer banks must notify constituents and ensure compliance with this statutory direction.
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