The Reserve Bank of India (RBI) in its Monetary Policy Committee evaluate right now, introduced that the unutilised exterior industrial borrowing (ECB) proceeds drawn down earlier than March 1, 2020, could be parked in time period deposits with banks within the nation, as much as March 1, 2022. The measure was introduced to supply reduction to debtors who couldn’t utilise the proceeds because of the affect of COVID-19. External industrial borrowings are merely industrial loans which can be raised by eligible resident entities from recognised non-resident entities based on the Reserve Bank. The entities should conform to parameters corresponding to permitted and non-permitted end-uses, minimal maturity, and many others.
RBI Governor Shaktikanta Das introduced that below the extant ECB framework, the debtors are allowed to position proceeds in time period deposits with banks in India for a most interval of 12 months. According to the one-time measure to supply reduction, the unutilised ECB proceeds drawn down on or earlier than March 1, 2020, can now be parked in time period deposits with AD category-I banks as much as subsequent 12 months – March 1, 2022.
