RBI revises ECB policy

Mumbai, May 21 (UNI) The Reserve Bank of India (RBI) today revised the policy on external commercial borrowings (ECBs) due to which utilisation of ECB proceedings has been barred in real estates, excluding development of integrated townships.

The review in this regard has been taken ''keeping in view the current macroeconomic situation and the experience gained so far by the Reserve Bank in administering the ECB policy'', said RBI here.

The Central Bank has revised all-in-cost ceilings of ECBs.

While the ceiling for ECBs that have a maturity period of three years to five years were reduced to 150 basis points from the existing level of 200 basis points, those having a maturity period more than five years was reduced from 350 basis points to 250 basis points.

These changes will be applicable to ECBs, both under automatic route as well as approval route with immediate effect and is subject to review, said RBI.

UNI