RBI/2013-14/304
A.P. (DIR Series) Circular No. 59
September 30, 2013
To,
All Authorised Dealer Category - I Banks
Madam / Sir
External Commercial Borrowings (ECB) Policy –
Refinancing / Rescheduling of ECB
Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to
A.
P. (DIR Series) Circular No. 5 dated August 01, 2005 and
A.P. (DIR Series)
Circular No. 112 dated April 20, 2012 relating to External Commercial Borrowings
(ECB).
- As per the extant guidelines, the eligible borrowers desirous of refinancing
an existing ECB can raise fresh ECB at a higher all-in-cost / reschedule an
existing ECB at a higher all-in-cost under the approval route subject to the
condition that the enhanced all-in-cost does not exceed the all-in-cost ceiling
prescribed as per extant guidelines.
- On a review, it has been decided to discontinue this facility allowing
eligible borrowers to raise ECB at a higher all-in-cost to refinance /
reschedule an existing ECB with effect from October 01, 2013.
- The scheme of refinance of existing ECB by raising fresh ECB at lower
all-in-cost, subject to the condition that the outstanding maturity of the
original ECB is either maintained or extended, will continue as hitherto under
the automatic route and approval route as the case may be.
- All other aspects of ECB policy shall remain unchanged. AD Category-I banks
may bring the contents of this circular to the notice of their constituents and
customers concerned.
- The directions contained in this circular have been issued under sections 10
(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are
without prejudice to permissions / approvals, if any, required under any other
law.
Yours faithfully
(C. D. Srinivasan)
Chief General Manager