External Commercial Borrowings (ECB) denominated in Indian Rupees (INR) - hedging facilities
AS per the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000;
++ "eligible borrowers" have been permitted to avail of ECBs designated in INR from foreign equity holders under the automatic/ approval route, as the case may be, as per the extant ECB guidelines.
++ NGOs engaged in microfinance activities have been permitted to avail of ECBs designated in INR, under the automatic route, from overseas organisations and individuals as per the extant ECB guidelines.
RBI has decided to allow non-residents to hedge their currency risk in respect of ECBs denominated in Indian Rupees, with AD Category I banks in India.
Necessary amendments to the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 are being notified.
RBI Circular No. 63/RBI Dated: December 29, 2011