<h1>RBI Eases Capital Account Rules: Higher Limits for ECBs & Foreign Investments in Government Securities and Mutual Funds.</h1> The Reserve Bank of India, in consultation with the Indian government, has announced liberalization measures for capital account transactions. Indian companies in the manufacturing and infrastructure sectors with foreign exchange earnings can now use external commercial borrowing (ECB) to repay or fund capital expenditures, with a ceiling of USD 10 billion. The investment limit for SEBI-registered foreign institutional investors in government securities has increased by USD 5 billion, raising the total to USD 20 billion. Long-term investors like Sovereign Wealth Funds and foreign central banks can now invest in government securities. Qualified Foreign Investors can invest in mutual funds with significant infrastructure holdings.