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RBI revises ECB norms

MUMBAI, JAN 31. The Reserve Bank of India (RBI) has revised the external commercial borrowings (ECBs) guidelines following the Government's decision to liberalise norms for funds raised through ECBs to promote investment in real sector, especially infrastructure.

As per the revised norms, which come into effect from tomorrow, all loans up to $500 million having a minimum average maturity of five years under the automatic route for investment in industrial, infrastructure sector and for acquisition of shares under the Government's disinvestment programme would not require prior approval of RBI or the Government, the central bank said in a release here today.

The all-in-cost ceilings have been fixed at two per cent and 3.5 per cent over six months London inter-bank offered rate for ECBs of minimum average maturity of 3-5 years and more than five years, respectively. — PTI

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