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ECB All-in-Cost Ceiling Extended Till Sep 30, 2013

Current · Source: Reserve Bank of India · RBI/2013-14/134 · issued 11 Jul 2013 · ~1 min read
Quick answerRBI has extended the existing all-in-cost ceiling for External Commercial Borrowings (ECB) until September 30, 2013. No other changes to ECB policy. AD Category-I banks must inform customers.
The rule, in the simplest words
How it plays out — a real example

A forex & trade-finance officer in Indore, Mr. Kumar, informs his corporate client that the RBI has extended the all-in-cost ceiling for ECB until September 30, 2013, and that they can continue to use the same cost limits for their borrowing. Mr. Kumar explains that this means they can continue to offer their client the same competitive interest rates and fees for their ECB, providing regulatory stability and continuity for their business.

What changed

The all-in-cost ceiling for ECB, previously set in March 2012, will remain in force until September 30, 2013. This is an extension of the existing cap, not a revision. The ceiling will be reviewed again after that date.

What it means for you

Banks and borrowers can continue using the same cost limits for ECB until end-September 2013, providing regulatory stability. No new pricing flexibility or tightening is introduced. Lenders should plan their ECB pipelines within the current ceiling until further notice.

What you must do

Who it affects

AD Category-I banks, Corporate borrowers using ECB, ECB lenders and arrangers

❓ Common questions

What is the all-in-cost ceiling that has been extended?

The ceiling was specified in A.P. (DIR Series) Circular No. 99 dated March 30, 2012. This circular extends its applicability until September 30, 2013.

Does this circular change any other ECB rules?

No. All other aspects of ECB policy remain unchanged as per the circular.

Who is responsible for communicating this to customers?

AD Category-I banks are directed to bring the contents of this circular to the notice of their constituents and customers.

📜 Read the original circular — full text as issued by RBI
RBI/2013-14/134 A.P.(DIR Series) Circular No.11 July 11, 2013 To All Category - I Authorised Dealer Banks Madam / Sir, External Commercial Borrowings (ECB) Policy – Review of all-in-cost ceiling Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 99 dated March 30, 2012 and A.P. (DIR Series) Circular No. 60 dated December 14, 2012 relating to ECB. 2. On a review, it has been decided that the all-in-cost ceiling as specified in A.P. (DIR Series) Circular No. 99 dated March 30, 2012 will continue to be applicable till September 30, 2013 and is subject to review thereafter. 3. All other aspects of ECB policy remain unchanged and AD Category-I banks may bring the contents of this circular to the notice of their constituents and customers concerned. 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/2013-14/134 · issued 11 Jul 2013. The plain-English explanation above is BankPulse’s own independent summary.
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Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (AD Category-I banks, Corporate borrowers using ECB, ECB lenders and arrangers), your first concrete step on “ECB All-in-Cost Ceiling Extended Till Sep 30, 2013” is: “Continue applying the existing all-in-cost ceiling for ECB approvals and disbursements.” (RBI issued this 11 Jul 2013).

  1. Circular: RBI/2013-14/134 -- ECB All-in-Cost Ceiling Extended Till Sep 30, 2013
  2. Issued: 11 Jul 2013
  3. Action required: Continue applying the existing all-in-cost ceiling for ECB approvals and disbursements.
  4. Action required: Inform corporate clients and constituents about the extension of the ceiling.
  5. Action required: Monitor RBI announcements for the post-September 30 review.
  6. Action required: Ensure compliance with all other unchanged ECB policy aspects.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. 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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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8233&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.
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