RBI relaxes period of parking of unutilised ECB proceeds in term deposits
Please see below the excerpt from the notification issued by RBI on External Commercial Borrowings (ECB) Policy – Relaxations:
| 1 | Notification date | 07.04.2021 |
| 2 | Subject |
External Commercial Borrowings (ECB) Policy – Relaxation in the period of parking of unutilized ECB proceeds in term deposits
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| 3 | Effective date | 07.04.2021 |
| 4 | Applicability | As per notification attached |
5 |
Brief description |
The RBI vide its notification dated 7th April 2021 has published External Commercial Borrowings (ECB) Policy – Relaxation in the period of parking of unutilized ECB proceeds in term deposits. Based on requests from stakeholders, including Industry associations, and with a view to providing relief to the ECB borrowers affected by the Covid-19 pandemic, it has been decided to relax the above stipulation as a one-time measure. Accordingly, unutilized ECB proceeds drawn down on or before March 01, 2020 can be parked in term deposits with AD Category-I banks in India prospectively for an additional period up to March 01, 2022.
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Notification is attached herewith for your ready reference & reading.