renewal and payment of ECB loan

[saraswathi P]

Kindly guide for renewal and repayment of ECB loan. If the company lending the loan has been taken over by some other company, is it necessary to intimate RBI.

[Rama Krishana]

Though, i did not find any provision specific to your query, but in my view, you may intimate the RBI since it is an exceptional circumstances - Al see: Master Circular - https://www.taxtmi.com/circulars?id=8143

AI Summary

Regulatory intimation for external commercial borrowings advised when the lending entity is taken over, despite no specific provision. The query asks whether a borrower must notify the regulator when the lender under an External Commercial Borrowing is taken over. No specific provision was found; the advised approach is to treat the takeover as an exceptional circumstance and to notify the regulator as a precaution. A Master Circular is cited as a general procedural reference for ECB matters.