RBI proposes to open foreign borrowing floodgates for companies
RBI has proposed extensive new External Commercial Borrowing (ECB) rules for 2025, replacing uniform caps with limits based on borrower financial strength. The draft widens eligibility for borrowers and lenders, removes rigid borrowing costs, and consolidates end-use rules. It also tightens fund-flow regulations, requiring immediate repatriation of proceeds unless for foreign currency expenses.
RBI has proposed extensive new External Commercial Borrowing (ECB) rules for 2025, replacing uniform caps with limits based on borrower financial strength. The draft widens eligibility for borrowers and lenders, removes rigid borrowing costs, and consolidates end-use rules. It also tightens fund-flow regulations, requiring immediate repatriation of proceeds unless for foreign currency expenses.
