External Commercial Borrowings limit expansion allows additional approved long term borrowings and greater bank prepayment authority. Amendment permits corporates additional ECB under the approval route for longer dated borrowings provided they meet minimum average maturity and comply with end use, recognised lender and all in cost conditions; prepayment and call/put options are not permitted on such additional ECB for the initial period. AD Category I banks may allow increased borrower prepayment without prior Reserve Bank approval, subject to the applicable minimum average maturity requirement. The changes are effective immediately and will be reflected in amendments to the Foreign Exchange Management Regulations.
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Provisions expressly mentioned in the judgment/order text.
External Commercial Borrowings limit expansion allows additional approved long term borrowings and greater bank prepayment authority.
Amendment permits corporates additional ECB under the approval route for longer dated borrowings provided they meet minimum average maturity and comply with end use, recognised lender and all in cost conditions; prepayment and call/put options are not permitted on such additional ECB for the initial period. AD Category I banks may allow increased borrower prepayment without prior Reserve Bank approval, subject to the applicable minimum average maturity requirement. The changes are effective immediately and will be reflected in amendments to the Foreign Exchange Management Regulations.
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