External Commercial Borrowings (ECB) - End-use and All-in-cost ceilings - Revised
RBI/2006-2007/409 May 21, 2007 To All Category – I Authorised Dealer Banks Madam / Sir, External Commercial Borrowings (ECB) – |
Average Maturity Period |
All-in-Cost ceilings over |
|
Existing |
Revised |
|
Three years and up to five years |
200 basis points |
150 basis points |
More than five years |
350 basis points |
250 basis points |
* for the respective currency of borrowing or applicable benchmark. |
3. The above changes will apply to ECB both under the automatic route as well as approval route with immediate effect and is subject to review.
4. Necessary amendments to Notification No. FEMA 3/2000-RB dated 3rd May 2000 [Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000] are being issued separately.
5. AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers concerned.
6. The directions contained in this circular have been issued under Section 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and is without prejudice to permissions / approvals, if any, required under any other law.
Yours faithfully,
(Salim Gangadharan)
Chief General Manager