RBI - Relaxation in the period of parking of unutilised ECB proceeds in term deposits

Last updated: 08 April 2021

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The Reserve Bank of India (RBI) has announced a one-time relaxation for External Commercial Borrowings (ECB) policy. This change allows ECB borrowers affected by the Covid-19 pandemic to park unutilised ECB proceeds drawn down on or before March 1, 2020, in term deposits with AD Category-I banks in India for an additional period up to March 1, 2022. All other ECB policy provisions remain unchanged.

Reserve bank of India RBI/2021-22/16 A.P. (DIR Series) Circular No. 01 Dated: April 07, 2021 To All Category-I Authorised Dealer Banks Madam / Sir, External Commercial Borrowings (ECB) Policy Relaxation in the period of parking of unutilised ECB proceeds in term deposits Please refer to paragraph 12 of theGovernors Statement on Developmental and Regulatory Policies dated April 07, 2021. In this connection, attention of Authorized Dealer Category-I (AD Category-I) banks is

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FAQ :

The RBI has extended the period for parking unutilised ECB proceeds in term deposits by an additional period up to March 1, 2022, as a one-time measure.

ECB borrowers who have been affected by the Covid-19 pandemic and had drawn down unutilised ECB proceeds on or before March 1, 2020, are eligible.

Unutilised ECB proceeds drawn down on or before March 1, 2020, can now be parked in term deposits until March 1, 2022.

No, all other provisions of the ECB policy remain unchanged.

Unutilised ECB proceeds can be parked in term deposits with AD Category-I banks in India.

Notification No : RBI/2021-22/16 A.P. (DIR Series) Circular No. 01
Source : https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=12070&Mode=0

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