External Commercial Borrowings maturity revisions narrow eligible infrastructure tenor and tighten mandatory hedging for shorter tenor ECBs. The Reserve Bank amended the ECB framework for infrastructure borrowers by reducing the minimum average maturity applicable to certain ECBs and lowering the average maturity threshold for exemption from mandatory hedging, resulting in intermediate tenor infrastructure ECBs being subject to 100% mandatory hedging; existing hedges need not be rolled over, other ECB policy provisions remain unchanged, and AD Category I banks are to inform constituents while the Master Direction will be updated.
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External Commercial Borrowings maturity revisions narrow eligible infrastructure tenor and tighten mandatory hedging for shorter tenor ECBs.
The Reserve Bank amended the ECB framework for infrastructure borrowers by reducing the minimum average maturity applicable to certain ECBs and lowering the average maturity threshold for exemption from mandatory hedging, resulting in intermediate tenor infrastructure ECBs being subject to 100% mandatory hedging; existing hedges need not be rolled over, other ECB policy provisions remain unchanged, and AD Category I banks are to inform constituents while the Master Direction will be updated.
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