No.CLE/ED/RBI CIRCULAR/2011
Sept. 27, 2011

Members of the Council.

SUB : External Commercial Borrowings (ECB) – Rationalisation and Liberalisation

Dear Member

The Reserve Bank of India has issued a Circular No. A.P. (DIR Series) Circular No.27 dated Sept. 23, 2011 on the above subject. The following are the highlights of the circular.

(i) Enhancement of ECB limit under the automatic route

Eligible borrowers in real sector-industrial sector-infrastructure sector can avail of ECB up to USD 750 million or equivalent per financial year under the automatic route as against the present limit of USD 500 million or equivalent per financial year.

(ii) ECBs designated in INR

All eligible borrowers’ can avail of ECBs designated in INR from foreign equity holders under the automatic/ approval route, as the case may be, as per the extant ECB guidelines.

The aforesaid liberalisation will come into force with immediate effect.

Members may kindly note the above.

With regards

Ali Ahmed Khan
Executive Director
COUNCIL FOR LEATHER EXPORTS