Date: |
07-04-2021
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Notification No: |
A.P. (DIR Series) Circular No. 01
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Issuing Authority: |
RBI
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Type: |
A.P.D.(Series) Circulars
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File No: |
RBI/2021-22/16 |
Subject: |
External Commercial Borrowings (ECB) Policy – Relaxation in the period of parking of unutilised ECB proceeds in term deposits
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RBI/2021-22/16 A.P. (DIR Series) Circular No.
01
April 07, 2021
To
All Category-I Authorised Dealer Banks
Madam / Sir,
External Commercial Borrowings (ECB) Policy – Relaxation
in the period of parking of unutilised ECB proceeds in term deposits
Please refer to paragraph 12 of the Governor’s Statement on Developmental and
Regulatory Policies dated April 07, 2021. In this connection, attention of
Authorized Dealer Category-I (AD Category-I) banks is invited to paragraph 4.2
of the of Master Direction No.5 dated March 26, 2019, on “External Commercial
Borrowings, Trade Credits and Structured Obligations”, in terms of which ECB
borrowers are allowed to park ECB proceeds in term deposits with AD Category-I
banks in India for a maximum period of 12 months cumulatively.
2. Based
on requests from stakeholders, including Industry associations, and with a view
to providing relief to the ECB borrowers affected by the Covid-19 pandemic, it
has been decided to relax the above stipulation as a one-time measure.
Accordingly, unutilised ECB proceeds drawn down on or before March 01, 2020 can
be parked in term deposits with AD Category-I banks in India prospectively for
an additional period up to March 01, 2022.
3. All other provisions of the
ECB policy remain unchanged. AD Category-I banks should bring the contents of
this circular to the notice of their constituents/ customers.
4. The
aforesaid Master Direction No. 5 dated March 26, 2019, is being updated to
reflect the changes.
5. The directions contained in this circular have
been issued under section 10(4) and 11(2) 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
Ajay Kumar Misra Chief
General Manager-in-Charge
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