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Presently, prior approval of RBI is required for any elongation/ rollover in the maturity period of an existing ECB.
This circular now permits banks to grant elongation/ rollover of the maturity period of an existing ECB (but not FCCB) availed under the Automatic Route or the Approval Route, subject to the following conditions: –
i. Changes, if any, in all-in-cost (AIC) must only be on account of change in average maturity period (AMP) as a result of re-scheduling of ECB and post rescheduling the AIC and the AMP must be in conformity with the applicable guidelines.
ii. T here must not be any increase in the rate of interest and no additional cost (in foreign currency/Indian Rupees) must be involved due to the re-scheduling.
iii. R e-scheduling is permitted, only once, before the maturity of the ECB.
iv. I f the lender is an overseas branch of a domestic bank, prudential norms applicable on account of rescheduling have to be complied with. v. Changes on account of re-scheduling must be reported to DSIM through revised Form 83.
vi. E CB should be in compliance with all applicable guidelines related to eligible borrower, recognised lender, AIC, AMP, end-uses, etc.
vii. The borrower must not be in the default / caution list of RBI and should not be under investigation of the Directorate of Enforcement.
