The Reserve Bank of India (RBI) vide Circular No. RBI/2022-23/88 A. P. (DIR Series) Circular No. 08 dated July 07, 2022 issued the “Overseas foreign currency borrowings of Authorised Dealer Category-I banks”.
In relation can utilise the funds raised from overseas foreign currency borrowings between July 08, 2022 and October 31, 2022 (both dates included) in terms of paragraph Part-C(5)(a) of the Master Direction – Risk Management and Inter Bank Dealings dated July 05, 2016, for lending in foreign currency to constituents in India. Such lending shall be subject to the end-use prescriptions as applicable to External Commercial Borrowings (ECBs) in terms of paragraph 2.1(viii) of the Master Direction – External Commercial Borrowings, Trade Credits and Structured Obligations dated March 26, 2019, as amended from time to time. This facility will be available till the maturity/ repayment of the overseas foreign currency borrowings.
Click here to read more.