With a view to providing greater flexibility for structuring of External Commercial Borrowings (ECB) arrangements, it has been decided that all recognised non-resident ECB lenders may extend loans in Indian Rupees by mobilising Indian Rupees through swaps undertaken with an Authorised Dealer Category I bank in India in terms of A.P. (DIR Series) Circular No. 25 dated September 03, 2014. At present all eligible borrowers are eligible to raise ECB in Indian Rupees only from their foreign equity holders.

Alpana Killawala

Principal Chief General Manager

External Commercial Borrowings in Indian Rupees may be extended by recognised non-resident lenders through rupee swaps with authorised banks. Recognised non-resident lenders may provide External Commercial Borrowings (ECB) in Indian Rupees by mobilising rupee resources through swaps with an Authorised Dealer Category I bank, relaxing the prior restriction that permitted rupee ECB only from foreign equity holders and thereby expanding permissible lender sources for rupee-denominated external loans.