RBI issues directions to ECBs, Trade Credits and Structured Obligations

Mar 27, 2019 | by Avantis RegTech Legal Research Team

The Reserve Bank of India (RBI) on March 26, 2019, issues direction to External Commercial Borrowings (ECB) and Trade Credits (TC) governed by Foreign Exchange Management Act, 1999 (FEMA). These two types of borrowings are framed under FEM (Borrowing and Lending) Regulations, 2018 and FEM (Guarantees) Regulations, 2000. These directions lay down the modalities as to how the foreign exchange business has to be conducted by the Authorised Persons with their customers/constituents with a view to implementing the regulations framed. The Instructions issued in respect of ECB and TC have been compiled in the Master Direction in supersession of earlier directions contained in Master Direction, dated January 1, 2016

[Notification No.: RBI/FED/2018-19/67]

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