Reserve Bank of India ("RBI") vide
its Notification no. RBI/2015-16/349 A.P. (DIR Series) Circular
No.56 dated 30 March 2016 ("the
Notification"), has revised the External Commercial
Borrowing ("ECB") Guidelines for
infrastructure companies and certain Non-Banking Financial
Institutions ("NBFCs"). It has also
issued few clarifications in respect of the Master Directions and
the circular issued on 30 November 2015.
Background
In the last quarter of 2015, RBI had revised the ECB Guidelines.
One of the main changes brought in by RBI was segregation of the
borrowers into 'Track I', 'Track II' and 'Track
III'. Certain NBFCs and companies in the infrastructure sector
were governed by the provisions of under the Track II borrowings
and were inter-alia subject to maintenance of minimum
average maturity period of 10 years. RBI has now, by the
Notification, amended this position by allowing such companies to
avail ECBs as Track I borrowings thereby giving more flexibility
