What changed
RBI reviewed the all-in-cost ceiling for ECB and decided to maintain the existing limits specified in the March 2012 circular. No revision was made to the ceiling. All other ECB policy parameters remain the same.
What it means for you
Banks and their corporate clients can continue to borrow overseas at the same cost limits as before. This provides stability and predictability for ECB pricing. Lenders should ensure that any new ECB proposals comply with the unchanged all-in-cost ceiling.
What you must do
- Continue to apply the all-in-cost ceiling as per A.P. (DIR Series) Circular No. 99 dated March 30, 2012 for all new ECB proposals.
- Inform your corporate customers that the ECB cost ceiling remains unchanged until further review.
- Monitor any future RBI circulars for potential revisions to the all-in-cost ceiling.
Who it affects
All Category-I Authorised Dealer Banks, Indian corporates raising ECB, Borrowers and lenders in the ECB market
What is the all-in-cost ceiling for ECB as per this circular?
The circular does not specify the exact ceiling figure; it only states that the ceiling set in the March 2012 circular continues to apply. You must refer to that earlier circular for the specific rate.
Does this circular change any other ECB rules?
No. All other aspects of ECB policy remain unchanged. Only the all-in-cost ceiling was reviewed and kept the same.
Who should we inform about this circular?
AD Category-I banks are required to bring the contents to the notice of their constituents and customers who are involved in ECB.