External Commercial Borrowings (ECB): ECBs are commercial loans
raised by eligible resident entities from recognized non-resident
entities and should conform to parameters such as minimum maturity,
permitted and non-permitted end-uses, maximum all-in-cost ceiling,
etc. The parameters apply in totality and not on a standalone
basis.
Track I : Medium term foreign currency denominated ECB with
minimum average maturity of 3/5 years.
Track II : Long term foreign currency denominated ECB with
minimum average maturity of 10 years.
Track III : Indian Rupee (INR) denominated ECB with minimum
average maturity of 3/5 years.
- The following changes have been
brought about by the notification External Commercial
Borrowings (ECB) Policy – Rationalisation and Liberalisation
dated 27th April 2018Uniform All-in cost Ceiling
has been decided for all External Commercial Borrowings at 450
basis points over the benchmark rate. However, for track I and II
rate will be 6 month USD
