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: -ECB for investment in real sector -industrial sector, especially infrastructure sector-in India, are under Automatic Route, i.e. do not require RBI / Government approval. In case of doubt as regards eligibility to access Automatic Route, applicants may take recourse to the Approval Route.

Detailed explanation-3: -Limit and leverage: Under the aforesaid framework, all eligible borrowers can raise ECB up to USD 750 million or equivalent per financial year under auto route.

Detailed explanation-4: -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.