RBI Seeks Views on Merging ECB in General
Bank Capital Policy Frame
[RBI
Press Release dated 23rd September 2015]
The Reserve Bank of India (RBI) has
today placed on its website for comments/feedback, the draft framework on
External Commercial Borrowings (ECBs). Comments/ feedback on the draft
framework may be e-mailed to or sent by post to the Principal Chief General
Manager, Foreign Exchange Department, Reserve Bank of India, Central Office,
11th Floor, Shahid Bhagat
Singh Marg, Mumbai-400 001
on or before October 11, 2015.
Background
The basic objective of the extant
External Commercial Borrowings (ECB) policy is to supplement domestic capital
for creation of capital assets in the country, limited by considerations for
capital account management. With this objective in view, the ECB regime has
been progressively liberalised over the years, allowing different entities to
raise ECB. Within the overarching stance of calibrated approach to the capital
account liberalisation, an attempt has now been made to replace the ECB policy
with a more rational and liberal framework, keeping in view the evolving
domestic as well as global macro-economic and financial conditions, challenges
faced in external sector management and the experience gained so far in
administering the ECB policy.