Amendment By Other Authorities

i. End Use Restrictions to use the ECB proceeds is relaxed for Resolution Applicants under Corporate Insolvency Resolution Process.

The Reserve Bank of India vide its circular dated 07.02.2019 (A.P. (DIR Series) Circular No. 18) has relaxed the applicability of External Commercial Borrowing guidelines in respect to borrowing to be arranged by Resolution Applicants for the Corporate Debtor going through CIRP. Accordingly the end use restrictions which otherwise is applicable w.r.t ECB proceeds raised by eligible borrowers from recognized lenders except the branches/overseas subsidiaries of Indian Banks, for repayment of Rupee term loans of the target company under the approval route will not be applicable in case of Resolution Applicant providing resolution plan w.r.t Corporate Debtor. The Resolution Applicant can proceed with filing the proposal to receive the ECB through the AD Bank to RBI for approval.