RBI Eases ECB Rules for Indian Companies

The RBI is making it easier for Indian companies to borrow from abroad. New rules aim to simplify ECB processes and expand the eligible borrower base.

, and Administrator

2025 October 23 . 8:04 AM

1 min read

Here, we see two men in green and black t-shirt are holding badminton bat in their hands. Behind... — Here, we see two men in green and black t-shirt are holding badminton bat in their hands. Behind them, we see many people sitting on chairs and encouraging these people and on bottom of the picture, we see a board which is blue in color.

RBI Eases ECB Rules for Indian Companies

The Reserve Bank of India (RBI) is set to ease borrowing rules for Indian companies seeking funds overseas via External Commercial Borrowing (ECB). The central bank aims to simplify reporting requirements and review end-use restrictions for these loans.

Currently, ECBs can be raised in any freely convertible Foreign Currency (FCY) or Indian Rupee (INR), with different eligible entities for each currency. However, the new framework will rationalize these rules, removing restrictions on the cost of borrowing.

The revised ECB framework is being developed to expand the eligible borrower and recognized lender base. This comes amidst a shift in funding sources, with non-bank sources more than offsetting the decline in banking sector flows in 2025-26. Despite a decline in ECB registrations in June 2025, the amount raised increased compared to the year ago period.

The RBI is reviewing and simplifying the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018, governing ECBs. The new framework will rationalize borrowing limits and restrictions on average maturity periods, making it easier for Indian companies to access overseas funds.