{"id":40596,"date":"2019-01-17T17:39:43","date_gmt":"2019-01-17T12:09:43","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=40596"},"modified":"2019-01-17T17:39:43","modified_gmt":"2019-01-17T12:09:43","slug":"40596-2","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/40596-2\/","title":{"rendered":"Untitled"},"content":{"rendered":"<p><a href=\"https:\/\/www.thehindu.com\/business\/Industry\/ecb-norms-eased\/article26006851.ece\"><strong>RBI eases norms for external commercial borrowing<\/strong><\/a><\/p>\n<p><strong>News:<\/strong> Reserve Bank of India has decided to liberalise external commercial borrowing (ECB) norms.<\/p>\n<p><strong>Facts:<\/strong><\/p>\n<ul>\n<li><strong>Removed the sector-wise limits:<\/strong> RBI has allowed all eligible borrowers to raise up to $750 million per financial year ECBs under the automatic route, replacing the existing sector-wise limits.<\/li>\n<li><strong>List of borrowers expanded:<\/strong> The list of borrowers has been expanded to include all entities eligible to receive FDI.<\/li>\n<li><strong>List of lenders expanded<\/strong>: Any entity who is a resident of a country which is financial action task force compliant, will be treated as a recognised lender.<\/li>\n<li><strong>Maturity of borrowings:<\/strong> RBI has revised minimum average maturity period at 3 years for all ECBs, irrespective of the amount of borrowing, except for borrowers specifically permitted to borrow for a shorter period. Earlier, the minimum average maturity period was five years.<strong>\u00a0<\/strong><\/li>\n<\/ul>\n<div class=\"bluebox\"><b>ECBs:<\/b><br \/>\nECBs refer to commercial loans in the form of bank loans, securitized instruments (e.g. floating rate notes and fixed rate bonds, non-convertible, optionally convertible or partially convertible preference shares), buyers\u2019 credit, suppliers\u2019 credit availed of from non-resident lenders with a minimum average maturity of 3 years.<\/div>\n<p>&nbsp;<\/p>\n<p><strong>Impact of the decision<\/strong>:<\/p>\n<ul>\n<li><strong>Higher funds availability<\/strong>: The step would increase the funds availability in India as until now RBI had capped funds raised via ECBs at 6.5% of GDP.<\/li>\n<li><strong>Ease of doing business<\/strong>: The move will lead to increase in EoDB in India.<\/li>\n<li><strong>Ease to cash-strapped companies<\/strong>: The move will bring more liquidity to cash strapped sectors and Indian airlines sector like currently struggling Jet Airways.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>RBI eases norms for external commercial borrowing News: Reserve Bank of India has decided to liberalise external commercial borrowing (ECB) norms. Facts: Removed the sector-wise limits: RBI has allowed all eligible borrowers to raise up to $750 million per financial year ECBs under the automatic route, replacing the existing sector-wise limits. List of borrowers expanded:&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/40596-2\/\">Continue reading <span class=\"screen-reader-text\">Untitled<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-40596","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704686267},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/40596","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=40596"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/40596\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=40596"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=40596"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=40596"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}