RBI asks companies to give details of ECB fund utilisation
The Reserve Bank asked companies to divide utilisation of funds raised through External Commercial Borrowings (ECBs) under the heads of foreign currency and rupee expenditure.
"On a review, it has been decided that at the time of availing Loan Registration Number (LRN) from the Reserve Bank, borrowers should provide bifurcation of the utilisation of the ECB proceeds towards foreign currency and rupee expenditure," RBI said in a notification.
In November, 2011, RBI had asked corporates to park funds raised through ECBs for domestic expenditure with local banks.
Such funds could be used for local sourcing of capital goods, on-lending to self-help groups or for micro credit and payment for spectrum allocation, among other purposes.
"The primary responsibility to ensure that the ECB proceeds meant for Rupee expenditure in India are repatriated to India for credit to their Rupee accounts," the RBI said.
Courtesy : PTI 7 May 2012