ECB Reporting: New Hedging Details in ECB-2 Return
Current · Source: Reserve Bank of India · RBI/2013-14/495 · issued 17 Feb 2014 · ~2 min read
Quick answerRBI has modified the ECB-2 Return format to include a new Part-E for capturing details of financial hedges on foreign currency exposure related to ECB. This change applies from April 2014 returns, with no other changes to reporting procedure or timelines.
The rule, in the simplest words
Starting April 2014, companies that borrow money from other countries (ECB) must tell their bank about any financial hedges (like insurance against currency value changes) they have.
Banks must update their forms to include a new section called Part-E for these hedge details in the monthly ECB-2 report.
The monthly report must still be sent to RBI within 7 working days after the month ends, with the new Part-E filled in.
Banks must inform all corporate customers who borrow from abroad about this new rule and help them provide the hedge information.
How it plays out — a real example
A forex & trade-finance officer in Indore, Priya, is helping a local jewelry company that borrowed $1 million from a foreign bank. She reminds them that starting April 2014, their monthly ECB-2 report must include a new Part-E showing any currency hedges they bought. Priya updates her bank's system to capture this data and trains her team to check the new section before submitting the report to RBI within 7 working days after each month ends.
What changed
The format of the ECB-2 Return has been modified by adding a new Part-E to capture details of financial hedges contracted by corporates for their foreign currency exposure relating to ECB and their foreign currency earnings and expenditure. The revised format is provided in the Annex to the circular. The new reporting requirement becomes applicable from the return for the month of April 2014 onwards.
What it means for you
Banks must ensure that corporates raising ECB include hedge details in the ECB-2 Return from April 2014. This enhances RBI's visibility into how corporates manage forex risk on their ECB exposures. The reporting procedure and monthly submission timeline remain unchanged, so banks can integrate this additional data into existing processes.
What you must do
Update internal systems and forms to capture the new Part-E hedge details in ECB-2 Returns from April 2014.
Inform all corporate clients raising ECB about the modified return format and the need to provide hedge information.
Ensure ECB-2 Returns continue to be submitted within seven working days from month-end, with the new Part-E completed.
Train staff on the revised format to avoid reporting errors or delays.
Who it affects
All Category-I Authorised Dealer Banks, Corporate borrowers raising External Commercial Borrowings, RBI's Department of Statistics and Information Management (DSIM)
❓ Common questions
What is the key change in the ECB-2 Return?
A new Part-E has been added to capture details of financial hedges contracted by corporates for their foreign currency exposure related to ECB and their foreign currency earnings and expenditure.
When does the new reporting requirement take effect?
The modified ECB-2 Return is applicable from the return for the month of April 2014 onwards.
Are there any changes to the reporting procedure or submission timeline?
No, the reporting procedure remains unchanged. Corporates must continue to submit the ECB-2 Return monthly, certified by the designated AD Category-I bank, within seven working days from the close of the month.
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/495
A. P. (DIR Series) Circular No. 105
February 17, 2014
To
All Category-I Authorised Dealer Banks
Madam / Sir,
External Commercial Borrowings (ECB) – Reporting arrangements
Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000, notified vide Notification No. FEMA 3/2000-RB dated May 3, 2000, as amended from time to time and A.P. (DIR Series) Circular No.60 dated January 31, 2004 relating to reporting arrangements for ECB.
2. In order to capture details of the financial hedges contracted by corporates, of their foreign currency exposure relating to ECB and their foreign currency earnings and expenditure, the format of ECB-2 Return has been modified (Part-E) and the same has been given in the Annex . The reporting in the modified ECB-2 Return will be applicable from the return of the month April 2014 onwards.
3. There is no change in the reporting procedure and corporates raising ECB continue to submit ECB-2 Return on a monthly basis duly certified by the designated AD Category-I bank so as to reach Department of Statistics and Information Management (DSIM) of Reserve Bank of India within seven working days from the close of month to which it relates.
4. AD Category - I banks may bring the contents of this circular to the notice of their constituents and customers.
5. The directions contained in this circular has been issued under sections 10(4) and 11(2) 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/2013-14/495 · issued 17 Feb 2014. The plain-English explanation above is BankPulse’s own independent summary.
Update internal systems and forms to capture the new Part-E hedge details in ECB-2 Returns from April 2014.
📜 Compliance
Inform all corporate clients raising ECB about the modified return format and the need to provide hedge information.
Ensure ECB-2 Returns continue to be submitted within seven working days from month-end, with the new Part-E completed.
Train staff on the revised format to avoid reporting errors or delays.
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 (All Category-I Authorised Dealer Banks, Corporate borrowers raising External Commercial Borrowings, RBI's Department of Statistics and Information Management (DSIM)), your first concrete step on “ECB Reporting: New Hedging Details in ECB-2 Return” is: “Update internal systems and forms to capture the new Part-E hedge details in ECB-2 Returns from April 2014.” (RBI issued this 17 Feb 2014).
Circular: RBI/2013-14/495 -- ECB Reporting: New Hedging Details in ECB-2 Return
Issued: 17 Feb 2014
Action required: Update internal systems and forms to capture the new Part-E hedge details in ECB-2 Returns from April 2014.
Action required: Inform all corporate clients raising ECB about the modified return format and the need to provide hedge information.
Action required: Ensure ECB-2 Returns continue to be submitted within seven working days from month-end, with the new Part-E completed.
Action required: Train staff on the revised format to avoid reporting errors or delays.
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=8747&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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