IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 26 Jun 2013 | Removal date: open ended
Still in force

Trade finance

On 26 June 2013, the Reserve Bank of India allowed the use of External Commercial Borrowings (ECB) to cover import of services, technical know-how and license fees when they form a part of the import of capital goods by companies. Earlier, only the cost of the capital goods was an eligible end use of ECBs.
 
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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