ECB threshold restricts large borrowings to overseas-use only, while smaller ECBs require overseas parking and approval for rupee use. Borrowings above a specified large-value threshold per borrower per financial year are permitted only for foreign-currency expenditures for permissible end-uses and must be parked overseas rather than remitted to India; this applies under both the Automatic and Approval Routes. ECB below that threshold may be used for foreign-currency expenditures under the Automatic Route with proceeds parked overseas, while rupee use of such funds requires prior Reserve Bank approval under the Approval Route and funds remain parked overseas until needed.
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.
ECB threshold restricts large borrowings to overseas-use only, while smaller ECBs require overseas parking and approval for rupee use.
Borrowings above a specified large-value threshold per borrower per financial year are permitted only for foreign-currency expenditures for permissible end-uses and must be parked overseas rather than remitted to India; this applies under both the Automatic and Approval Routes. ECB below that threshold may be used for foreign-currency expenditures under the Automatic Route with proceeds parked overseas, while rupee use of such funds requires prior Reserve Bank approval under the Approval Route and funds remain parked overseas until needed.
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