Mumbai: A day after RBI liberalised norms for raising overseas funds, the central bank today revised procedures for the companies which want to tap the external commercial borrowings (ECBs). (Agencies)
"On a review, it has been decided to rationalise the Form submitted to the Reserve Bank for obtaining Loan Registration Number (LRN) to reflect the liberalisation and rationalization measures that have been carried out over a period of time," the apex bank said.
Accordingly, borrowers desirous of obtaining LRN from July 1 onwards may submit the revised Form, it said.
However, all other conditions of ECB, such as eligibility of borrower, recongnised overseas lender, end use and reporting arrangements, will remain unchanged.
In its bid to enhance more capital flows and ease pressure on the sliding rupee, the RBI in consultation with the government had further liberalised ECB norms yesterday.
It allowed Indian companies in manufacturing and infrastructure sector to avail of ECB for repayment of rupee loans and fresh capital expenditure. The overall ceiling for such ECBs would be USD 10 billion.
The indicative annual ECB ceiling for Indian companies now stands at USD 40 billion, up from USD 30 billion.
India Inc has raised USD 34.40 billion by way of ECBs in 2011-12 fiscal. In the April-May period of the current fiscal, the companies have already mopped up USD 5.97 billion.
Mumbai: A day after RBI liberalised norms for raising overseas funds, the central bank today revised procedures for the companies which want to tap the external commercial borrowings (ECBs).