External Commercial Borrowings (ECB) – Revised Policy Framework

Global Tax Update:January 2016/India

In consultation with the Government of India, the Reserve Bank of India on 30 November 2015 has prescribed a revised ECB policy framework.This newsletter explains the essential changes. (Global Tax Update:January 2016/India)

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Key highlights of the major parameters governing ECB policy
  • Nature of ECB and Minimum Average Maturity (MAM)
  • Eligible Borrowers – Who can borrow under each of the tracks?
  • Recognized Lenders / Investors - Who can lend under each of the tracks?
  • All-in-cost ceiling (Penal interest for default or breach of covenants < 2% over and above the contracted rate of interest.)
  • Permitted End-uses
  • Individual Limits


>> Click for Japanese [対外商業借入(External Commercial Borrowing)の規定改正]

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