ECB in Indian Rupees mobilisation via back-to-back swaps enables overseas lenders to fund INR loans; AD banks must verify documentation. Recognised non-resident lenders may extend INR denominated ECBs by mobilising INR through a swap: the lender approaches an overseas bank which enters a back to back swap with an AD Category I bank in India. AD banks must obtain documentation (scanned acceptable) to verify the underlying INR ECB, take a one time KYC certification on the end client, retain records for RBI verification, ensure the swap continues only while the underlying ECB exists, and permit maturity settlement via the overseas bank's vostro account.
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Provisions expressly mentioned in the judgment/order text.
ECB in Indian Rupees mobilisation via back-to-back swaps enables overseas lenders to fund INR loans; AD banks must verify documentation.
Recognised non-resident lenders may extend INR denominated ECBs by mobilising INR through a swap: the lender approaches an overseas bank which enters a back to back swap with an AD Category I bank in India. AD banks must obtain documentation (scanned acceptable) to verify the underlying INR ECB, take a one time KYC certification on the end client, retain records for RBI verification, ensure the swap continues only while the underlying ECB exists, and permit maturity settlement via the overseas bank's vostro account.
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