75th Founding Day Lecture Meeting on “India@2030” Know More

October 2014

A. P. (DIR Series) Circular No. 25 dated 3rd September, 2014

By Gaurang Gandhi Chartered Accountant
Reading Time 1 mins
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External Commercial Borrowings (ECB) in Indian Rupees

This circular permits eligible lenders of ECB to lend in Indian Rupees, subject to the following terms and conditions: –

a. The lender must mobilise Indian Rupees through swaps undertaken with a bank in India.

b. The ECB contract must comply with all other conditions applicable to the automatic and approval routes, as the case may be.

c. The all-in-cost of such ECB must be commensurate with prevailing market conditions.

The recognised lender, for the purpose of executing swaps for ECB denominated in Indian Rupees, can set up a representative office in India and also hedging their rupee exposures.

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