External Commercial Borrowings (ECB) in Indian Rupees

With a view to providing greater flexibility for structuring of ECB arrangements, it has been decided that recognised non-resident ECB lenders may extend loans in Indian Rupees subject to the following conditions:

  1. The lender should mobilise Indian Rupees through swaps undertaken with an Authorised Dealer Category-I bank in India.
  2. The ECB contract should comply with all other conditions applicable to the automatic and approval routes as the case may be.
  3. The all-in-cost of such ECBs should be commensurate with prevailing market conditions

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