RBI Eases ECB Norms

To further improve the ease of doing business in India, the Reserve Bank of India on January 16 drawn up a new external commercial borrowing (ECB) framework.

Highlights

• The eased norms allowing all eligible borrowers to raise up to $750 million per financial year under the automatic route, replacing the existing sector-wise limits. The central bank has also expanded the list of eligible borrowers and recognised lenders.
• To curb volatility in the forex market arising out of dollar demand for crude oil purchases, the framework provides a special dispensation to public sector oil marketing companies.
• It allows them to raise ECB, with ....