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RBI/2015-16/440
A.P. (DIR Series) Circular No. 80
June 30, 2016
To
All Authorised Dealer Category-I Banks
Madam / Sir
External Commercial Borrowings (ECB) – Approval Route
cases
Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to
paragraph no. D.15 of Annex to
A.P. (DIR Series) Circular No.32 dated November 30, 2015 and
paragraph no. 2.11 of Master Direction No.5 dated January 1, 2016 on External
Commercial Borrowings, Trade Credit, Borrowing and Lending in Foreign Currency
by Authorised Dealers and Persons other than Authorised Dealers, in respect of
ECB cases coming under the approval route. In terms of the aforesaid
Circular/Direction, cases coming under the approval route were required to be
considered by an Empowered Committee set up by the Reserve Bank based on the
parameters stated therein.
2. With a view to rationalizing and expediting the process of giving
approval, it has been decided that ECB proposals received in the Reserve Bank
above a certain threshold limit (refixed from time to time) be placed before the
Empowered Committee. The Reserve Bank will take a final decision in the cases
taking into account the recommendation of the Empowered Committee.
3. All other aspects of the ECB policy shall remain unchanged. AD Category -
I banks may bring the contents of this circular to the notice of their
constituents and customers.
4. The Master Direction No. 5 dated January 01, 2016 is being updated to
reflect the changes.
5. The directions contained in this circular have been issued under section
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,
(A. K. Pandey)
Chief General Manager
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