External commercial borrowing (ECBs) are loans in India made by non-resident lenders in foreign currency to Indian borrowers. They are used widely in India to facilitate access to foreign money by Indian corporations and PSUs (public sector undertakings).
Fema / RBI : The new ECB framework removes rigid conditions and introduces flexibility in borrowing and repayment. It significantly improves ea...
Fema / RBI : The 2026 amendment replaces rigid interest rate ceilings with market-determined pricing. The reform expands borrowing flexibility ...
Fema / RBI : Revised ECB framework allows broader borrower and lender participation while eliminating fixed interest spread ceilings. Borrowing...
Fema / RBI : The RBI’s 2026 amendment liberalizes External Commercial Borrowings by removing cost caps and raising borrowing limits while ret...
Fema / RBI : The Reserve Bank of India has notified the “Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2...
Fema / RBI : Presenting the General Budget 2012-13 in LokSabha here today, ShriPranab Mukherjee, Finance Minister announced various majors for ...
Fema / RBI : With a view to rationalising the present arrangements relating to foreign portfolio investments by Foreign Institutional Investors...
Fema / RBI : Those exercising the option include Mahindra & Mahindra, Reliance Communications, Tulip Telecom, Moser Baer, Jubilant Organosys, R...
Finance : Reserve Bank of India has issued A. P. (DIR series) circular no. 26 dated October 22, 2008, to modify some aspects of the ECB poli...
Income Tax : ITAT Mumbai held that set off of loss of Permanent Establishment [PE] against the interest income received from External Commercia...
Fema / RBI : i) increase the automatic route limit from USD 750 million or equivalent to USD 1.5 billion or equivalent. ii) increase the all...
Fema / RBI : As a measure of simplification of the existing procedures, it has been decided to delegate powers to the designated AD Category-I ...
Fema / RBI : Hitherto, Indian corporates in the services sectors viz., hotels, hospitals and software were allowed to avail ECB upto USD 100 mi...
Fema / RBI : India's central bank on Tuesday eased oversees borrowing rules for Infrastructure Finance Companies (IFC). The IFC's will not nee...
Fema / RBI : Attention of Authorised Dealer Category - I (AD Category - I) banks is invited to Notification No.FEMA 29/2000-RB dated September ...
The new ECB framework removes rigid conditions and introduces flexibility in borrowing and repayment. It significantly improves ease of access to global funding.
The 2026 amendment replaces rigid interest rate ceilings with market-determined pricing. The reform expands borrowing flexibility and aligns India’s external borrowing framework with global financing practices.
Revised ECB framework allows broader borrower and lender participation while eliminating fixed interest spread ceilings. Borrowing limits are now linked to financial strength instead of rigid thresholds.
The RBI’s 2026 amendment liberalizes External Commercial Borrowings by removing cost caps and raising borrowing limits while retaining strict compliance and end-use safeguards.
The Reserve Bank of India has notified the “Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026” vide Notification No. FEMA 3(R)(5)/2026-RB dated 9th February 2026 effective immediately upon publication in the Official Gazette. The Reserve Bank of India hereby makes the following amendments to the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 […]
Summarizes how ECBs are regulated under FEMA and RBI rules, highlighting the proposed market-driven 2025 framework and its impact on borrowers.
ITAT Mumbai held that set off of loss of Permanent Establishment [PE] against the interest income received from External Commercial Borrowing, on which benefit of concessional rate tax availed, is allowable. Accordingly, appeal allowed to that extent.
Understand the intricacies of External Commercial Borrowings (ECB) – concept, modes, compliance, and steps. Explore criteria, restrictions, and filing procedures for successful ECB procurement.
Explore the impact of FDI restrictions on countries sharing a land border with India and the role of External Commercial Borrowings (ECB) in addressing funding needs. Understand the regulatory landscape, including the amendment to FDI policy and the scrutiny on equity participation. Delve into the eligibility criteria for ECB, recognised lenders, and the present situation for investments from land border-sharing countries. Navigate the complexities of FDI and ECB to make informed financial decisions.
This comprehensive article delves into the topic of External Commercial Borrowings (ECB), covering the regulations, eligibility criteria, and reporting requirements. Gain insights into the purpose, maturity period, limits, and procedures associated with ECB. Stay informed about the latest updates and guidelines for raising ECB.
