TIOL-DDT 289 · Tuesday, 24 January 2006 · story 3 of 7

External Commercial Borrowings (ECB) by Multi-State Co-operative Societies – RBI instructions

RBI has decided to allow Multi-State Co-operative Societies engaged in manufacturing activity to raise ECB. The proposals for ECB by Multi-State Co-operative Societies engaged in manufacturing activity would be considered by the Reserve Bank under the Approval Route, provided :

i. the Co-operative Society is financially solvent,

ii. the Co-operative Society submits its up-to-date audited balance sheet and

iii. the proposal complies with all other parameters of ECB guidelines such as recognised lender, permitted end-use, average maturity period, all-in-cost ceiling etc. as mentioned in paragraph 1 (B) of the circular dated August 01, 2005, referred to above.

CIRCULAR NO. 23, Dated: January 23, 2006