In terms of the extant External Commercial Borrowings (ECB) Policy eligible Indian companies were permitted to refinance / repay the Rupee loans, raised by them from the domestic banking system, by raising ECB from recognised lenders, subject to conditions.
However, as per the circular dated 09.05.2014, RBI has decided that eligible Indian companies will not be permitted to raise ECB from overseas branches/ subsidiaries of Indian banks for the purpose of refinance / repayment of the Rupee loans raised from the domestic banking system in respect of Scheme of takeout financing, Repayment of existing Rupee loans for companies in infrastructure sector, Spectrum allocation, and Repayment of Rupee loans.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
