RBI SIMPLIFIES ECB PROCEDURE

RBI has simplified some of the ECB procedures. It has allowed authorized banks to approve changes in draw down /repayment schedule of the ECBs already availed, both under the approval and the automatic routes. This is subject to the condition that the average maturity period, as declared while obtaining the loan registration number (LRN), is maintained. Borrowers can also make changes in currencies, subject to all other terms and conditions of the ECB remaining unchanged. Banks may allow borrowers to change the existing designated by a company for effecting its ECB subject to a No-Objection Certificate (NOC) from the existing designated bank and post due diligence. All other aspects of the ECB policy, such as $500 million limit per company per financial year under the automatic route, eligible borrower, recognized lender, end-use, all-in-cost ceiling, average maturity period, prepayment, refinancing of existing ECB and reporting arrangements remain unchanged.