IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 19 Dec 2011 | Removal date: open ended
Still in force

FDI: Entry and ownership rule

On 19 December 2011, the Reserve Bank of India allowed microfinance institutions to borrow up to USD 10 million through external commercial borrowings (ECBs) under the automatic route. Also, non-governmental organisations engaged in microfinance can avail ECBs up to USD 10 million or equivalent per year under the automatic route. Prior to the change, these NGOs were only allowed to raise an annual total of USD 5 million.
 
Through ECBs, Indian companies and Public Sector Undertakings can access funds from abroad. According to the Reserve Bank of India, ECBs refer to commercial loans in the form of bank loans, securitised instruments, buyers' credit and suppliers' credit availed of from non-resident lenders with a minimum average maturity of 3 years.
 

 

AFFECTED COUNTRIES

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