RBI Overhauls External Borrowing Rules

  Published 6 months ago

RBI proposes ECB rules linking limits to strength, removing caps, widening eligible borrowers and lenders.

  • Firms can borrow up to $1 billion or 300% net worth, whichever exceeds the previous $1.5 billion cap.
  • Cost caps scrapped; borrowings priced at market rates, except under‑three‑year debt tied to trade credit.
  • Companies under restructuring or investigation may access ECB with approvals or disclosures, broadening financing opportunities.

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