RBI seeks feedback on draft framework on External Commercial Borrowings

Mumbai, Sept 24 (KNN) The Reserve Bank of India (RBI) has placed on its website for comments/feedback, the draft framework on External Commercial Borrowings (ECBs).

RBI has sought for Comments/ feedback on the draft framework through email or by post on or before October 11, 2015.

The basic objective of the extant External Commercial Borrowings (ECB) policy is to supplement domestic capital for creation of capital assets in the country, limited by considerations for capital account management.

With this objective in view, the ECB regime has been progressively liberalised over the years, allowing different entities to raise ECB. Within the overarching stance of calibrated approach to the capital account liberalisation, an attempt has now been made to replace the ECB policy with a more rational and liberal framework, keeping in view the evolving domestic as well as global macro-economic and financial conditions, challenges faced in external sector management and the experience gained so far in administering the ECB policy. (KNN Bureau)