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:

1Notification date07.04.2021


External Commercial Borrowings (ECB) Policy – Relaxation in the period of parking of unutilized ECB proceeds in term deposits


3Effective date07.04.2021
4ApplicabilityAs per notification attached




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.


Notification is attached herewith for your ready reference & reading.