What changed
The instructions from A.P. (DIR Series) Circular No. 112 dated April 20, 2012, which were set to expire, have been extended. They will now remain applicable until September 30, 2013, after which RBI will review them again.
What it means for you
Banks and borrowers can continue to refinance or reschedule existing ECBs under the same terms as before for another three months. This provides temporary regulatory stability for ongoing ECB restructuring deals. No new conditions or relaxations have been introduced.
What you must do
- Inform all customers about the extension of ECB refinancing/rescheduling instructions till September 30, 2013.
- Continue processing ECB refinancing/rescheduling applications as per existing guidelines.
- Monitor RBI announcements for any review after September 30, 2013.
- Ensure compliance with all other unchanged ECB policy aspects.
Who it affects
AD Category-I banks, Indian borrowers with existing ECBs, Lenders involved in ECB refinancing/rescheduling
What is the key change in this circular?
The circular extends the validity of earlier ECB refinancing/rescheduling instructions until September 30, 2013. No other changes have been made to ECB policy.
Do I need to apply for fresh approval for refinancing under this extension?
No, the circular simply extends the timeline for existing instructions. You can continue to use the same framework without needing new approvals, provided you meet all other conditions.
What happens after September 30, 2013?
RBI will review the instructions again after that date. Banks should stay alert for further circulars that may modify or replace the current framework.