External Commercial Borrowings - Simplification of procedure
AS a measure of simplification of the existing procedures, RBI has decided to delegate powers to the designated AD category-I banks to approve the following requests from the ECB borrowers, subject to specified conditions:
a) Reduction in amount of ECB:
The designated AD Category-I bank may approve requests from ECB borrowers for reduction in loan amount in respect of ECBs availed under the automatic route, subject to ensuring the following conditions:-
(i) the consent of the lender for reduction in loan amount has been obtained;
(ii) the average maturity period of the ECB is maintained;
(iii) the monthly ECB-2 returns in respect of the LRN have been submitted to the Department of Statistics and Information Management (DSIM); and
(iv) there is no change in the other terms and conditions of the ECB.
b) Changes/modifications in the drawdown schedule when original average maturity period is not maintained: the designated AD Category-I bank may approve requests from ECB borrowers for changes/modifications in the drawdown schedule resulting in the original average maturity period undergoing change in respect of ECBs availed both under the automatic and approval routes, subject to ensuring the following conditions:-
(i) there are no changes/modifications in the repayment schedule of the ECB;
(ii) the average maturity period of the ECB is reduced as against the original average maturity period stated in the Form 83 at the time of obtaining the LRN;
(iii) such reduced average maturity period complies with the stipulated minimum average maturity period as per the extant ECB guidelines;
(iv) the change in all-in-cost is only due to the change in the average maturity period and the ECB complies with the extant guidelines; and
(v) the monthly ECB-2 returns in respect of the LRN have been submitted to DSIM.
c) Reduction in the all-in-cost of ECB: The designated AD Category-I bank may approve requests from ECB borrowers for reduction in all-in-cost, in respect of ECBs availed both under the automatic and approval routes, subject to ensuring the following conditions:-
(i) the consent of the lender has been obtained and there are no other changes in the terms and conditions of the ECB; and
(ii) the monthly ECB-2 returns in respect of the LRN have been submitted to DSIM.