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
2Subject

 

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

 

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.

 

Notification is attached herewith for your ready reference & reading.