Companies can raise $750 mn yearly via external commercial borrowings: RBI

The minimum maturity profile of the ECBs should be three years, except certain cases

The Reserve Bank of India (RBI) on Wednesday allowed entities that are eligible to receive foreign direct investment (FDI) to raise external commercial borrowings (ECBs), by enabling them to raise funds through automatic route up to $750 million per year. The ECBs raised would be within the overall cap set by the regulator on December 20 last year — at 6.5 per cent of gross domestic product. The limit worked out to $160 billion, against the total outstanding ECB stock of $126.29 billion as on September 30, 2018.

The minimum maturity profile of the ECBs should be three years, except