RBI issues norms on ECB for low cost affordable house projects

The Reserve bank of India (RBI) has issued guidelines for External Commercial Borrowings (ECBs) for the low cost affordable housing projects. The details are as follows:-

• The condition of the minimum Net Owned Funds (NOFs) of Rs 300 crore for the past three financial years remains unchanged.
• The aggregate limit for ECB under the low cost affordable housing scheme is extended for the financial years 2013-14 and 2014-15 with a ceiling of USD 1 billion in each of the two years, subject to review thereafter.
• The ECB availed of by developers and builders shall be swapped into Rupees for the entire maturity on fully hedged basis