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)
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.