Current · Source: Reserve Bank of India · RBI/2013-14/303 · issued 30 Sep 2013 · ~1 min read
Quick answerRBI has extended the existing all-in-cost ceiling for External Commercial Borrowings (ECB) until March 31, 2014. The ceiling, set under earlier circulars, remains unchanged. AD Category-I banks must inform customers. No other ECB policy changes were made.
The rule, in the simplest words
The RBI (Reserve Bank of India) says the limit on how much interest and fees you can pay for borrowing money from outside India (called all-in-cost ceiling) stays the same until March 31, 2014.
This limit was first set in March 2012, and now it is extended, so no changes for now.
Banks that are allowed to handle foreign money (AD Category-I banks) must tell their customers about this rule.
After March 2014, the RBI might change the limit, so everyone should watch for updates.
How it plays out — a real example
A forex & trade-finance officer in Indore is helping a local jeweler plan a loan from a foreign bank. She checks the RBI circular and tells the jeweler, 'The interest and fees you can pay on this external borrowing (ECB) are capped at the same rate as before, and this rule is good until March 2014. So you can go ahead with your deal knowing the cost limit won't change suddenly.'
What changed
RBI reviewed the all-in-cost ceiling for ECB and decided to keep the existing ceiling, originally specified in March 2012, applicable until March 31, 2014. The previous circular from July 2013 had set the stage for this review. No other ECB policy aspects were altered.
What it means for you
Banks and borrowers can continue using the same all-in-cost ceiling for ECB until end-March 2014, providing stability in borrowing costs. This extension avoids any sudden tightening of external borrowing limits. Lenders should note that the ceiling may be reviewed after March 2014, so planning for potential changes is prudent.
What you must do
Inform all constituents and customers about the continued applicability of the existing all-in-cost ceiling until March 31, 2014.
Ensure all ECB transactions comply with the unchanged all-in-cost ceiling as per the March 2012 circular.
Monitor RBI announcements for any review of the ceiling after March 2014.
Advise clients to factor in the current ceiling when structuring new ECB deals.
Who it affects
AD Category-I banks, Borrowers availing External Commercial Borrowings, Corporate treasuries and finance teams
❓ Common questions
What is the all-in-cost ceiling for ECB that remains applicable?
The ceiling is the same as specified in A.P. (DIR Series) Circular No. 99 dated March 30, 2012. The circular does not provide the specific rate, but it remains unchanged until March 31, 2014.
Does this circular change any other ECB rules?
No. All other aspects of ECB policy remain unchanged as per the circular.
What should AD Category-I banks do with this information?
Banks must 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/2013-14/303
A.P. (DIR Series) Circular No. 58
September 30, 2013
To, All Authorized Dealer Category - I 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. 11 dated July 11, 2013 relating to the all-in-cost ceiling for ECB.
2. On a review, it has been decided that the all-in-cost ceiling as specified under paragraph 2 of A.P. (DIR Series) Circular No. 99 dated March 30, 2012 will continue to be applicable till March 31, 2014 and subject to review thereafter. All other aspects of ECB policy remain unchanged.
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
(C. D. Srinivasan)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/303 · issued 30 Sep 2013. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (AD Category-I banks, Borrowers availing External Commercial Borrowings, Corporate treasuries and finance teams), your first concrete step on “ECB All-in-Cost Ceiling Extended Till March 2014” is: “Inform all constituents and customers about the continued applicability of the existing all-in-cost ceiling until March 31, 2014.” (RBI issued this 30 Sep 2013).
Circular: RBI/2013-14/303 -- ECB All-in-Cost Ceiling Extended Till March 2014
Issued: 30 Sep 2013
Action required: Inform all constituents and customers about the continued applicability of the existing all-in-cost ceiling until March 31, 2014.
Action required: Ensure all ECB transactions comply with the unchanged all-in-cost ceiling as per the March 2012 circular.
Action required: Monitor RBI announcements for any review of the ceiling after March 2014.
Action required: Advise clients to factor in the current ceiling when structuring new ECB deals.
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 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=8481&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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