Reserve Bank of India has further revised the ECB Policy in order to rationalize the end-use restrictions vide itsnotification A.P. (DIR Series) Circular No. 04 dated 30th July, 2019. In accordance to the said notification-
|
S.N. |
End Use- Restriction |
Average Maturity Period |
| 1. |
The eligible borrowers are permitted to raise ECBs for working capital purposes and general corporate purposes. Further, borrowings by NBFCs for on-lending for the stated purpose is also allowed |
10 years |
| 2. |
The eligible borrowers be permitted to raise ECBs for repayment of rupee loans availed domestically for capital expenditure and NBFCs may also raise ECBs for on-lending for the same purpose |
7 years |
| 3. |
The eligible borrowers has been allowed to raise ECBs for repayment of rupee loans availed domestically for other than capital expenditure and NBFCs may also raise ECBs for on-lending for the said purpose |
10 years |
| 4. |
The eligible corporate borrowers be eligible to raise ECBs for repayment of rupee loans availed domestically for capital expenditure in manufacturing and infrastructure sector if such loan has been classified as Special Mention Account-2* (SMA-2)/ NPA under any one time settlement with lenders. Further, NBFCs are allowed to raise ECBs for on-lending Lenders banks are permitted to sell through assignment, such loans to eligible ECB lenders, except foreign branches/ overseas subsidiaries of Indian banks, provided, the resultant ECB complies with theextant norms. |
It shall be in accordance with the extant ECB Master Directions. |
*SMA-2 means the assets on which principal or interest payment or any amount wholly or partly overdue between 61-90 days as referred to in Prudential Framework for Resolution of Stressed Assets vide notification issued by RBI dated June 7, 2019.