Reserve bank of India (RBI) on February 07, 2019, passed a circular allowing Resolution Applicants to raise funds for repayment to lender under Corporate Insolvency Resolution Process through External Commercial Borrowings (ECB) Policy.
RBI in consultation with Government allows the resolution applicants under the Corporate Insolvency Resolution Process (CIRP) to raise ECBs from the recognized lenders, except the branches or overseas subsidiaries of Indian banks, for repayment of Rupee term loans of the target company under the approval route. Accordingly the resolution applicants, who are otherwise eligible borrowers, can forward such proposals to raise ECBs, through their AD bank, to Foreign Exchange Department, Central Office, Mumbai of the Reserve Bank for approval.
The amended ECB policy will come into force with immediate effect.
[Circular No. RBI/2018-19/121]