RBI finalizes amendments to ECB framework
pre-market1 source ↓written by the desknot a recommendation
The Reserve Bank of India has finalized amendments to its External Commercial Borrowing (ECB) framework, easing rules for on-lending and current account requirements. Notably, the RBI has permitted on-lending to individuals while maintaining restrictions on real estate loans. This move aims to enhance liquidity and support borrowing in key sectors.
• Removed current account requirement for designated authorized dealer banks.
• Clarified that acquisition of control is a permitted end-use of ECB funds.
• Retained restrictions on real estate activities for ECB funds.
Not investment advice. For informational purposes only.