<h1>RBI Revises ECB Policy: Prior Approval Needed for Loans Over USD 20 Million, Restrictions on Domestic Use Imposed.</h1> A circular issued on August 7, 2007, aims to protect the economy from excessive capital inflow by revising the External Commercial Borrowings (ECB) policy. It mandates prior approval from the Reserve Bank of India (RBI) for ECBs exceeding USD 20 million, which cannot be used for domestic purposes. ECBs up to USD 20 million require RBI approval for remittance in India for rupee expenditure. These restrictions apply per financial year and do not affect borrowers with existing loan agreements and registration numbers from the RBI. Other aspects of the ECB policy remain unchanged.