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RBI/2014-15/3
Master Circular No. 12/ 2014-15

July 01, 2014
(Updated up to January 23, 2015)

To
All Authorised Dealer Category – I banks and Authorised banks
Madam / Sir
Master Circular on External Commercial Borrowings and Trade Credits
External Commercial Borrowings and Trade Credits availed of by residents are governed by clause (d) of sub-section 3 of section 6 of the Foreign Exchange
Management Act, 1999 read with Notification No. FEMA 3/ 2000-RB viz. Foreign
Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations,
2000, dated May 3, 2000, as amended from time to time.
2. This Master Circular consolidates the existing instructions on the subject of
"External Commercial Borrowings and Trade Credits" at one place. The list of underlying circulars / notifications, consolidated in this Master Circular, is furnished in the Appendix. This Master Circular may be referred to for general guidance. The
Authorised Persons and the Authorised Dealer Category – I banks may refer to respective circulars/ notifications for detailed information, if so needed.
3. This Master Circular is being updated from time to time as and when the fresh instructions are issued. The date up to which the Master Circular has been updated is suitably indicated.
Yours faithfully
(B P Kanungo)
Principal Chief General Manager

1

Index
PART I
EXTERNAL COMMERCIAL BORROWINGS (ECB)
I.(A) AUTOMATIC ROUTE
i) Eligible Borrowers ii) Recognised Lenders iii) Amount and Maturity iv) All-in-cost ceilings
v) End-use vi) Payment for Spectrum Allocation vii) End-uses not permitted viii) Guarantees ix) Security
x) Parking of ECB proceeds xi) Prepayment xii) Refinancing of an existing ECB xiii) Debt Servicing xiv) Corporates Under Investigation xv) Procedure
I.(B) APPROVAL ROUTE
i) Eligible Borrowers ii) Recognised Lenders iii) Amount and…...

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