FCCB Buyback Limit Raised to USD 100 Mn with Tiered Discounts
Current · Source: Reserve Bank of India · RBI/2008-09/461 · issued 28 Apr 2009 · ~1 min read
Quick answerRBI increased the FCCB buyback limit from USD 50 Mn to USD 100 Mn per company, using internal accruals, with tiered minimum discounts: 25% for up to USD 50 Mn, 35% for USD 50-75 Mn, and 50% for USD 75-100 Mn. Prior RBI approval required.
The rule, in the simplest words
RBI increased the FCCB buyback limit from USD 50 Mn to USD 100 Mn per company.
Higher buyback amounts now require larger minimum discounts: 25% for up to USD 50 Mn, 35% for USD 50-75 Mn, and 50% for USD 75-100 Mn.
Prior RBI approval is required for buybacks exceeding USD 50 Mn.
How it plays out — a real example
A forex & trade-finance officer in Indore helped an Indian company retire USD 80 Mn of FCCB debt at a 40% discount, reducing their foreign currency liabilities and improving their balance sheet. The officer ensured the company met the tiered discount threshold and completed the process by the deadline.
What changed
The maximum permissible buyback of FCCBs out of internal accruals was raised from USD 50 million to USD 100 million per company. Higher buyback amounts now require larger minimum discounts: 25% for up to USD 50 Mn, 35% for USD 50-75 Mn, and 50% for USD 75-100 Mn of redemption value.
What it means for you
Indian companies can now retire more FCCB debt at a discount, reducing foreign currency liabilities and improving balance sheets. Banks facilitating these buybacks must ensure clients meet the tiered discount thresholds and complete the process by December 31, 2009.
What you must do
Advise corporate clients on the revised FCCB buyback limits and tiered discount requirements.
Verify that buyback proposals submitted to RBI include proof of internal accruals and applicable discount.
Ensure all buyback transactions are completed by December 31, 2009, as per earlier circular.
Maintain records of approvals and discounts applied for each buyback.
Who it affects
AD Category-I banks, Indian companies with outstanding FCCBs, Corporate treasuries managing foreign currency debt
❓ Common questions
What is the maximum FCCB buyback amount now allowed?
Indian companies can buy back up to USD 100 million of redemption value per company using internal accruals, subject to RBI approval and tiered discounts.
What discounts apply for different buyback amounts?
Minimum discount of 25% for up to USD 50 Mn, 35% for USD 50-75 Mn, and 50% for USD 75-100 Mn of redemption value.
Is RBI approval still required for these buybacks?
Yes, all buybacks under this circular require prior RBI approval under the approval route.
📜 Read the original circular — full text as issued by RBI
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/461 · issued 28 Apr 2009. The plain-English explanation above is BankPulse’s own independent summary.
Maintain records of approvals and discounts applied for each buyback.
📜 Compliance
Advise corporate clients on the revised FCCB buyback limits and tiered discount requirements.
Verify that buyback proposals submitted to RBI include proof of internal accruals and applicable discount.
Ensure all buyback transactions are completed by December 31, 2009, as per earlier circular.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (AD Category-I banks, Indian companies with outstanding FCCBs, Corporate treasuries managing foreign currency debt), your first concrete step on “FCCB Buyback Limit Raised to USD 100 Mn with Tiered Discounts” is: “Advise corporate clients on the revised FCCB buyback limits and tiered discount requirements.” (RBI issued this 28 Apr 2009).
Circular: RBI/2008-09/461 -- FCCB Buyback Limit Raised to USD 100 Mn with Tiered Discounts
Issued: 28 Apr 2009
Action required: Advise corporate clients on the revised FCCB buyback limits and tiered discount requirements.
Action required: Verify that buyback proposals submitted to RBI include proof of internal accruals and applicable discount.
Action required: Ensure all buyback transactions are completed by December 31, 2009, as per earlier circular.
Action required: Maintain records of approvals and discounts applied for each buyback.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4959&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.