RESERVE BANK OF INDIA

External Commercial Borrowings (ECB) – Reporting arrangements

The Reserve Bank of India has issued the circular no. A.P.(DIR Series) Circular No. 105 dated 17th February, 2014 modifying the ECB 2 –Return to Capture the details of the financial hedges contracted by corporates, of their foreign currency exposure relating to ECB and their foreign currency earnings and expenditure.
There is no change in the reporting procedure and corporates raising ECB continue to submit ECB-2 Return on a monthly basis duly certified by the designated AD Category-I bank.

The Reserve Bank of India (“RBI”) has issued the circular no. A.P. (DIR Series) Circular No.104 dated 14th February, 2014 revising the sub-limits of Commercial Paper from USD 3.5 billion by USD 1.5 billion to USD 2 billion to be invested by the SEBI registered FII’s, QFI’s and Long term investor.

The revised position is given below:

Reserve bank of India (“RBI”) has issued the circular A.P. (DIR Series) Circular No.102 dated 11th February, 2014 amending the Form FC-GPR to capture the granular details of FDI as regards Brownfield/Greenfield investments and the date of incorporation of investee company.

Reserve Bank of India (“RBI”) has issued circular no A.P. (DIR Series) Circular No.100 dated 4th February, 2014 with regard to difficulties faced by exporters / importers in meeting the condition “firm irrevocable order backed by a tripartite agreement should be in place” at the time of third party payments,

As per the circular, RBI has decided not to insist upon such condition, where the documentary evidence for circumstances leading to third party payments / name of the third party being mentioned in the irrevocable order/ invoice has been produced. This is subject to the following conditions:

1. AD bank should be satisfied with the bona-fides of the transaction and export documents, such as, invoice / FIRC.

2. AD bank should consider the FATF statements while handling such transaction.

Further, with a view to liberalise the procedure, the limit of USD 100,000 eligible for third party payment for import of goods, stands withdrawn.