On 27 August 2014, the Reserve Bank of India amended the requirement that refinancing of External Commercial Borrowings (ECBs) at lower all-in costs but with a maturity period more than the residual maturity of the existing ECB would need an approval from the RBI. Henceforth such refinancing can be approved by scheduled banks directly provided certain conditions regarding all-in cost, time of refinancing, liquidity of borrower, reporting requirements etc. are duly met.
 
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.