Home > Indian Industry News, Infrastructure > RBI relaxes ECB norms for Infrastructure finance companies

RBI relaxes ECB norms for Infrastructure finance companies

The Reserve Bank of India through a circular dated 11 May ’10 has allowed infrastructure finance companies (IFCs) to raise funds through external commercial borrowings without obtaining its prior approval. IFCs can now raise funds through ECBs up to 50 per cent of their owned funds under the automatic route, according to the circular.

“As a measure of liberalisation of the existing procedures, it has been decided to permit the IFCs to avail themselves of ECBs, including the outstanding ECBs, up to 50 per cent of their owned funds under the automatic route, subject to their compliance with the prudential guidelines already in place,” the circular said.

Companies raising more than 50 per cent of their owned funds through the ECB window would continue to require approval from RBI.

This move will ensure preferential lines of credit to companies lending to the infrastructure sector.

Advertisements
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: