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Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
Learn MoreA voluntary organisation established on 6th July 1949, BCAS has presently more than 9,000 members from all over the country. BCAS is a principle-centered and learning-oriented organisation promoting quality service and excellence in the profession of Chartered Accountancy.
Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
Learn MoreLorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.
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Presently, refinancing of existing ECB by raising fresh ECB at lower all-in-cost is permitted under the Automatic Route if the outstanding maturity of the original loan is maintained. However, case where the Average Maturity Period (AMP) of the fresh ECB is more than the residual maturity of existing ECB need prior approval of RBI under the approval route.
This circular gives power to Banks to approve, under the Automatic Route, refinancing of existing ECB by raising fresh ECB at lower all-in-cost even if the Average Maturity Period (AMP) of the fresh ECB is more than the residual maturity of existing ECB, subject to the following conditions: –
i. Both the existing and fresh ECB must be in compliance with the applicable guidelines;
ii. A ll-in-cost of fresh ECB must be less than that of the all-in-cost of existing ECB;
iii. Consent of the existing lender must be obtained;
iv. Refinancing must to be undertaken before the maturity of the existing ECB;
v. Borrower must not be in the default/Caution List of RBI and must not be under the investigation of the Directorate of Enforcement (DoE);
vi. O verseas branches/subsidiaries of Indian banks are not be permitted to extend ECB for refinancing an existing ECB; and
vii. All requirements in respect of reporting arrangements like filing of revised Form 83, etc. must be followed.
This facility is available even in those cases where existing ECB was raised under the approval route if the amount of new ECB raised is eligible to be raised under the automatic route.