External Commercial Borrowings (ECBs) - Prepayment

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.... External Commercial Borrowings (ECBs) - Prepayment Attention of authorised dealers is invited to A.P.(DIR Series) circular No.8 dated August 5, 2002 regarding introduction of an 'automatic route' for prepayment of ECBs. 2. Under the automatic route prepayment of ECBs was permitted, without any limit, out of foreign exchange inflow through either fresh equity or out of balances held in Exch....

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....he amount being prepaid does not exceed USD 100 million. 4. Authorised dealers may, therefore, allow remittances not exceeding USD 100 million for prepayment of ECBs after obtaining a certificate from the company secretary/auditors of the borrower, indicating that the borrower - • has availed and utilised the loan in accordance with all relevant Acts, RBI/Government Rules, Regulati....

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....s desirous of availing of the facility may make application to the Reserve Bank of India, Central Office, Mumbai with full particulars, namely, terms of the prepayment, the period over which the prepayment is to be made and also whether `in principle' contract for prepayment has been negotiated with the lender. Further, corporates desirous of obtaining `in principle' approval from the Bank before ....