Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
Latest Circulars »
Open DEMAT Account in 24 hrs
  Auction of Government of India Dated Securities
 Extension of validity of Directions under Section 35A read with section 56 of the Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) HCBL Co-operative Bank Ltd Lucknow (U.P.)
 Winning in Uncertain Times: The Indian Experience (Inaugural Speech by Shri Shaktikanta Das, Governor, Reserve Bank of India - November 22, 2023 - Delivered at the FIBAC 2023 Conference Organised Jointly by FICCI and IBA at Mumbai)
 International Trade Settlement in Indian Rupees (INR) Opening of additional Current Account for exports proceeds
 Regulatory measures towards consumer credit and bank credit to NBFCs
 Emerging India: A Land of Stability and Opportunities (Keynote Speech by Shri Shaktikanta Das, Governor, Reserve Bank of India - November 9, 2023 - Delivered at the Symposium on Indian Economy 2023 organised by Institute of Indian Economic Studies at the Tokyo Chamber of Commerce and Industry, Tokyo, Japan)
 Auction of Government of India Dated Securities Nov 06, 2023
 Premature redemption under Sovereign Gold Bond (SGB) Scheme - Redemption Price for premature redemption due on November 04 and 06, 2023 (SGB 2018-19 Series I and SGB 2017-18 Series VI)
  Auction of State Government Securities
  RBI announces results of second edition of its Global Hackathon HARBINGER 2023
 Results of Underwriting Auctions Conducted on October 13, 2023

External Commercial Borrowings (ECB) Policy Parking of ECB proceeds
November, 22nd 2014

RBI/2014-15/309
A.P. (DIR Series) Circular No. 39

November 21, 2014

To

All Authorised Dealer Category-I Banks

Madam / Sir

External Commercial Borrowings (ECB) Policy – Parking of ECB proceeds

Attention of Authorized Dealer Category - I (AD Category- I) banks is invited to A.P. (DIR Series) Circular No. 52 dated November 23, 2011 relating to parking of proceeds of External Commercial Borrowings (ECB).

2. At present, eligible ECB borrowers are required to bring ECB proceeds, meant for Rupee expenditure in India for permitted end uses, such as, local sourcing of capital goods, on-lending to Self-Help Groups or for micro credit, payment for spectrum allocation, etc., immediately for credit to their Rupee accounts with AD Category - I banks in India.

3. With a view to providing greater flexibility to the ECB borrowers in structuring draw down of ECB proceeds and utilisation of the same for permitted end uses, it has been decided to permit AD Category -I banks to allow eligible ECB borrowers to park ECB proceeds (both under the automatic and approval routes) in term deposits with AD Category- I banks in India for a maximum period of six months pending utilisation for permitted end uses. The facility will be with the following conditions:

  1. The applicable guidelines on eligible borrower, recognised lender, average maturity period, all-in-cost, permitted end uses, etc. should be complied with.

  2. No charge in any form should be created on such term deposits i.e. to say that the term deposits should be kept unencumbered during their currency.

  3. Such term deposits should be exclusively in the name of the borrower.

  4. Such term deposits can be liquidated as and when required.

4. The amended ECB policy will come into force with immediate effect and is subject to review. All other aspects of ECB policy would remain unchanged.

5. AD Category banks may bring the contents of this circular to the notice of their constituents and customers.

6. The directions contained in this circular have been issued under sections 10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions / approvals, if any, required under any other law.

Yours faithfully

(B P Kanungo)
Principal Chief General Manager

Home | About Us | Terms and Conditions | Contact Us
Copyright 2023 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting