CURRENT AFFAIRS

Detailed explanation-1: -The Reserve Bank of India (RBI), in consultation with the Government of India, has issued a notification (Notification)[1] to liberalise the norms governing the foreign borrowings for infrastructure companies.

Detailed explanation-2: -The DEA (Department of Economic Affairs), Ministry of Finance, Government of India along with Reserve Bank of India, monitors and regulates ECB guidelines and policies. Most of these loans are provided by foreign commercial banks and other institutions.

Detailed explanation-3: -External Commercial Borrowings ("ECB’s) are commercial loans raised by eligible resident entities solely for commercial purposes, from recognised non-resident entities. The Reserve Bank of India ("RBI") has over the years substantially relaxed the ECB Regulatory Framework.

Detailed explanation-4: -(a) Corporates (registered under the Companies Act except financial intermediaries (such as banks, financial institutions (FIs), housing finance companies and NBFCs) are eligible to raise ECB. Individuals, Trusts and Non-Profit making Organisations are not eligible to raise ECB.