RBI proposes changes to external commercial borrowing rules
market hours1 source ↓written by the desknot a recommendation
- 300% of net worth
The Reserve Bank of India (RBI) has unveiled draft regulations to simplify external commercial borrowing (ECB). Key changes include linking borrowing limits to the borrower's financial strength and allowing ECBs up to USD1 billion or 300% of net worth. This replaces the previous USD750 million cap, potentially increasing market access for firms.
These amendments aim to enhance liquidity and attract foreign investment, which may positively influence market sentiment and trading activity.
Not investment advice. For informational purposes only.