On Wednesday, Reserve Bank of India said that unutilised ECB fb proceeds that it to be drawn down before March 1, 2020 which can be perked in term deposits with banks in India prospectively up to March 1,2022 of a relief to borrowers who couldn’t utilise the proceeds due to lock down.
That it is the loan/ debt taken by an eligible persons in India for commercial purpose , outside India from any recognized entity , which is outside of India.
These External Commercial Borrowings are the mode of loans in India made by non residents lenders in foreign countries to Indian borrowers. They are used widely in India to facilitate access to foreign money by Indian Corporation and Public Sector Undertaking.
For the recovery of these debts, RBI has provided certain reliefs to utilise.
Extant ECB framework, borrowers are allowed to place ECB proceeds in terms deposits with banks in India for Maximum period of 12 months.