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External Commercial Borrowings External commercial borrowing (ECBs) are loans made by non-resident lenders in foreign currency to Indian borrowers. They are used widely in India to facilitate access to foreign money by Indian corporations and PSUs (public sector undertakings). The debtors can be the government, corporations or citizens of that country. The debt includes money owed to private commercial banks, foreign governments, or international financial institutions such as IMF and World Bank. For the telecom sector, infrastructure and Greenfield projects, funding up to 50% (through ECB) is allowed. Recently, RBI issued a guideline stating that all eligible borrowers can raise…
11 July, 2020
External commercial borrowing
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