To provide greater flexibility to the ECB borrowers in structuring draw down of ECB proceeds and utilization of the same for permitted end uses, it has been decided to permit AD Category -I banks to allow eligible ECB borrowers to park ECB proceeds (both under the automatic and approval routes) in term deposits with AD Category- I banks in India for a maximum period of six months pending utilization for permitted end uses.
The facility will be with the following conditions:
- The applicable guidelines on eligible borrower, recognized lender, average maturity period, all-in-cost, permitted end uses, etc. should be complied with.
- No charge in any form should be created on such term deposits.
- Such term deposits should be exclusively in the name of the borrower
- Such term deposits can be liquidated as and when required.
Note: The amended ECB policy will come into force with immediate effect and is subject to review. All other aspects of ECB policy would remain unchanged.
To view the full notification, please follow the link.