1

Quick referencer for the revised

ECB framework
Revised ECB framework- ready referencer 2

Requirement Track I Track II Track III

Medium term ECB denominated in foreign currency Long term ECB denominated in Medium term ECB denominated in INR
foreign currency

Minimum Average Maturity 3 years for ECB up to USD 5 mn & 5 years for ECB beyond that More than 10 years 3 years for ECB upto USD 5 mn & 5 years for
('MAM') ECB beyond that
Currency denomniation Foreign currency Foreign currency INR
Eligible borrower Companies in manufacturing, software development, shipping and All the Companies given in track 1 Companies in track I plus NBFCs, Section 8
companies airlines sector for any MAM within 10 years companies, societies, trust and cooperatives and
(refer notes 1) NGOs engaged in micro finance activities
Companies in infrastructure sector, NBFC-IFCs, NBFC-AFCs Holding
companies and CIC with MAM of 5 years and max of 10 years
subject to100 % hedging

Eligible lenders
(refer note 1 & 2)
Permitted end use
Foreign equity holders &
other specified financial institutions
Capital expenditures which inter alia includes overseas investment in
JV/WOS and refinancing of existing ECB. Further, ECB can also be
availed for general corporate purpose (including working capital),
however, only from foreign direct/indirect equity holder or from a
group company for MAM of 5 years
Exceptions:
- NBFC-IFCs, NBFC-AFCs can raise ECB only for financing
infrastructure
- Holding Companies and CICs shall use ECB proceeds only for on-
lending to infrastructure Special Purpose Vehicles (SPVs).
Foreign equity holders &
other specified financial institutions
For all purposes except-real estate,
investment in capital market, domestic
equity investment, purchase of land and
lending to entities with the said objects
Foreign equity holders; and in case of section 8
companies & NGOs, ECB can also be availed
from overseas organizations and individuals
satisfying certain conditions
For all purposes except-real estate, investment in
capital market, domestic equity investment,
purchase of land and lending to entities with the
said objects.
Exception-
NBFCs may raise ECBs for on-lending for any
activities including infrastructure as permitted by
the concerned regulatory department of RBI.

Limits(for automatic Companies in infrastructure sector/Holding Companies/CIC/NBFC-IFCs, NBFC-AFCs - USD 750 mn

route) companies in software development sector- USD 200 mn
Entities in micro finanace - USD 100 mn
Other entities- USD 500 mn

Notes:
1 Only key extracts from the revised ECB framework which have been summarized here.
2 The term foreign equity holder for the purpose of ECB means: (a) direct foreign equity holder with minimum 25% direct equity holding by the lender in the borrowing entity, (b) indirect
equity holder with minimum indirect equity holding of 51%, and (c) group company with common overseas parent.
3 Only those NBFCs which comes under the regulatory purview of RBI could raise ECBs
4 RBI has delegated substantial powers to AD Banks to deal with ECB cases. These powers have been specified in this revised ECB framework.