External Commercial Borrowings (ECB) Policy - Structured Obligations

External Commercial Borrowings policy extends credit enhancement to domestic infrastructure debt, including maturity, fee, and cost caps.

Credit enhancement by eligible non-resident entities is permitted for domestic rupee denominated capital market instruments issued by infrastructure companies and RBI classified Infrastructure Finance Companies, subject to conditions: providers limited to multilateral/regional and government development institutions; minimum average maturity of seven years; no prepayment or call/put options up to seven years; guarantee fees capped at 2%; invocation and novation to eligible non-residents subject to applicable all in cost ceilings; IFCs must meet eligibility/prudential norms and fully hedge foreign currency designation; ECB reporting rules apply.