BANKING AFFAIRS

Detailed explanation-1: -In case of an ECB raised from foreign equity holder and utilized for general corporate purpose/working capital/repayment of Rupee loans, can repayment of principal of ECB start before the completion of 5 years? Yes, however, the ECB should have minimum average maturity period of 5 years.

Detailed explanation-2: -Minimum Average Maturity Period (MAMP): MAMP will be 3 years for all ECBs. However, for ECB raised from foreign equity holder and utilised for specific purposes, as detailed in the Annex, the MAMP would be 5 years.

Detailed explanation-3: -The MAMP is computed on an weighted average method basis the outstanding amount of the ECB. Minimum average maturity period for the ECB will be 3 years.