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RBI Discontinues Renminbi ECB Scheme for Infrastructure

Current · Source: Reserve Bank of India · RBI/2012-13/546 · issued 25 Jun 2013 · ~1 min read

Quick answerRBI has discontinued the Renminbi (RMB) ECB scheme for infrastructure companies, effective June 25, 2013, due to zero utilization since its 2011 launch. AD Category-I banks must inform customers immediately.

The rule, in the simplest words

The RBI stopped the Renminbi (RMB, Chinese currency) ECB (foreign loan) scheme for infrastructure companies, effective June 25, 2013.
All AD Category‑I banks (banks approved to deal in foreign exchange) must immediately stop processing any new RMB ECB applications.
Banks must quickly tell their infrastructure customers that the RMB ECB option is no longer available.
Banks should update their internal forex policies, training materials, and advisory notes to remove the discontinued scheme.

How it plays out — a real example

Rohit, a senior foreign exchange officer at State Bank of India in Mumbai, receives a request from an infrastructure client to raise a Renminbi loan. He checks the latest RBI circular, informs the client that the RMB ECB scheme was discontinued on June 25, 2013, and advises the client to explore other funding options, while updating the bank’s advisory sheet.

What changed

RBI reviewed the Renminbi ECB scheme, which allowed infrastructure firms to borrow up to USD 1 billion annually under approval route, and found it completely unused. Consequently, the scheme has been discontinued from the date of this circular, June 25, 2013.

What it means for you

Infrastructure companies can no longer raise ECB in Renminbi under the approval route, removing a funding option that was never utilized. Banks must update their forex advisory services and ensure no new RMB ECB applications are processed. This closure simplifies the ECB framework but may limit currency diversification for borrowers.

What you must do

Immediately stop processing any new Renminbi ECB applications under the discontinued scheme.
Notify all corporate customers, especially infrastructure firms, about the scheme's closure via circular or advisory.
Update internal forex policy documents and training materials to reflect the removal of RMB ECB.
Review any pending approvals or inquiries related to RMB ECB and advise customers accordingly.

Who it affects

AD Category-I banks handling forex transactions, Infrastructure companies that were eligible for RMB ECB, Corporate treasuries exploring Renminbi funding options

❓ Common questions

Regulatory timeline

Stated effective date effective June 25, 2013
Decoded by BankPulse 2026-06-18 15:14 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Why did RBI discontinue the Renminbi ECB scheme?

The scheme had zero utilization since its introduction in September 2011, so RBI decided to discontinue it effective June 25, 2013.

Can infrastructure companies still raise ECB in other currencies?

Yes, other ECB routes and currencies remain available under existing RBI guidelines; only the specific Renminbi scheme under approval route is discontinued.

What should banks do if a customer inquires about RMB ECB?

Inform them that the scheme has been discontinued and guide them to alternative ECB options in other currencies.

📜 Read the original circular — full text as issued by RBI

RBI/2012-13/546
 A.P. (DIR Series) Circular No. 117
 June 25, 2013
 To, 
 All Authorized Dealer Category - I Banks
 Madam / Sir 
 External Commercial Borrowings (ECB) in Renminbi (RMB)
 Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 30 dated September 27, 2011 on the captioned subject in terms of which Indian companies in the infrastructure sector are allowed to avail of ECB in Renminbi (RMB) under approval route subject to an annual cap of USD one billion pending further review.
 2. It has been observed that the facility of ECB in Renminbi (RMB) had remained unused so far. Accordingly, the scheme of ECB in Renminbi has been reviewed and it has been decided that this scheme may be discontinued from the date of issue of this circular. 
 3. AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers.
 4. The directions contained in this circular have been issued under Sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.
 Yours faithfully
 (Rudra Narayan Kar)
 Chief General Manager in-Charge

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/546 · issued 25 Jun 2013. The plain-English explanation above is BankPulse’s own independent summary.

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Who does what — compliance checklist

💻 IT / Systems

Immediately stop processing any new Renminbi ECB applications under the discontinued scheme.

📜 Compliance

Notify all corporate customers, especially infrastructure firms, about the scheme's closure via circular or advisory.
Update internal forex policy documents and training materials to reflect the removal of RMB ECB.
Review any pending approvals or inquiries related to RMB ECB and advise customers accordingly.

Grouped from the action items above — a single circular may involve more than one team.

Worked example & action-note template

Example: if you are an IT/Systems lead at a bank this circular applies to (AD Category-I banks handling forex transactions, Infrastructure companies that were eligible for RMB ECB, Corporate treasuries exploring Renminbi funding options), your first concrete step on “RBI Discontinues Renminbi ECB Scheme for Infrastructure” is: “Immediately stop processing any new Renminbi ECB applications under the discontinued scheme.” (RBI issued this 25 Jun 2013).

Circular: RBI/2012-13/546 -- RBI Discontinues Renminbi ECB Scheme for Infrastructure
Issued: 25 Jun 2013
Action required: Immediately stop processing any new Renminbi ECB applications under the discontinued scheme.
Action required: Notify all corporate customers, especially infrastructure firms, about the scheme's closure via circular or advisory.
Action required: Update internal forex policy documents and training materials to reflect the removal of RMB ECB.
Action required: Review any pending approvals or inquiries related to RMB ECB and advise customers accordingly.
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.

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BankPulse Compliance Evidence Pack — generated 03 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=8060&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.