CURRENT AFFAIRS

Detailed explanation-1: -Through the 2022 ECB Circular, RBI has doubled the borrowing limit for ECBs availed under the automatic route to USD 1.5 billion or equivalent, from the previous limit of USD 750 million.

Detailed explanation-2: -RBI has increased the ECBs limit under automatic route, from USD 750 million per financial year to USD 1.5 billion.

Detailed explanation-3: -Introduction: External Commercial Borrowings are commercial loans raised by eligible resident entities from recognised non-resident entities and should conform to parameters such as minimum maturity, permitted and non-permitted end-uses, maximum all-in-cost ceiling, etc.

Detailed explanation-4: -Maximum interest that can be paid is Benchmark rate plus 450 bps spread. No minimum interest to be paid is specified.

Detailed explanation-5: -Maximum Amount of ECB: Maximum amount of ECB to be availed by Star up been limited to USD 3 (three) million per financial year. 7. Forms of the ECB: The ECB borrowing can be availed in many forms- viz. a commercial loan, non-convertible / optionally convertible/ or partially convertible preference shares.