A.P. (DIR Series) Circular No. 128
May 9, 2014
All Category – I Authorised Dealer Banks
External Commercial Borrowings (ECB) Policy:
Re-schedulement of ECB – Simplification of procedure
Attention of Authorised Dealer Category – I (AD Category – I) banks is invited to the instructions contained in A.P. (DIR Series) Circular No.33 dated February 09, 2010 in terms of which AD Category – banks are permitted to approve changes / modifications in the drawdown / repayment schedule of the ECBs already availed, both under the approval and the automatic routes, subject to the conditions. However, any elongation / rollover in the repayment on expiry of the original maturity of the ECB requires the prior approval of the Reserve Bank.
2. As a measure of simplification of the existing procedures, it has been decided to delegate the power to the designated AD Category – I bank to allow re-schedulement of ECB due to changes in draw-down schedule and / or repayment schedule with the following conditions:
3. The facility will be available for ECBs raised both under the automatic and approval routes. Provisions of this Circular do not apply to FCCBs.
4. The modification to the ECB policy will come into force with immediate effect. All other aspects of the ECB policy shall remain unchanged.
5. AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers.
6. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
(Rudra Narayan Kar)
Chief General Manager-in-Charge