RBI proposes changes to external commercial borrowing regulations
after close1 source ↓written by the desknot a recommendation
- borrowings
- 300% of net worth
The Reserve Bank of India (RBI) has introduced draft regulations to liberalize external commercial borrowing (ECB). Key changes include replacing the USD750 million annual cap with a dynamic limit based on outstanding ECBs or borrowings up to 300% of net worth. This shift aims to foster a more market-driven borrowing environment, removing fixed cost ceilings and allowing banks to determine borrowing costs based on market conditions.
Not investment advice. For informational purposes only.