Before availing ECB , the borrower in India have to obtain LRN ( Loan Registration number ) from RBI under automatic route .
The procedure for obtaining LRN number is as follows:
For allotment of Loan Registration Number (LRN), borrowers are required to submit Form 83, in duplicate, certified by the Company Secretary (CS) or Chartered Accountant (CA) to the designated AD bank. One copy is to be forwarded by the designated AD bank to the Director, Balance of Payments Statistics Division, Department of Statistics and Information Systems (DSIM), Reserve Bank of India, Bandra-Kurla Complex, Mumbai – 400 051.
(c) The borrower can draw-down the loan only after obtaining the LRN from DSIM, Reserve Bank.
(d) Borrowers are required to submit ECB-2 Return certified by the designated AD bank on monthly basis so as to reach DSIM, Reserve Bank within seven working days from the close of month to which it relates.
Please note that previous returns relating to ECB viz. ECB 3 – ECB 6 have been discontinued with effect from January 31, 2004.
Under automatic approval route , the following futher procedures have to be adhered :
* Board Resolution towards the ECB application.
* Loan Agreement to be entered with Recognized Lender.
* Documents related to application of LRN (Loan Registration Number) by filing Form 83 in duplicate duly certified by any Practicing Professional
* The Certificate of Due Diligence to be submitted by the Overseas Organizations / Individual Lender to AD Bank of Indian company (Borrower)
* Form 83 duly filled
* No Objection by AD Category I bank in case of creation of charge on immovable property if any.
* ECB Return - 2 on monthly basis once ECB is availed.
The procedure for obtaining LRN number is as follows:
For allotment of Loan Registration Number (LRN), borrowers are required to submit Form 83, in duplicate, certified by the Company Secretary (CS) or Chartered Accountant (CA) to the designated AD bank. One copy is to be forwarded by the designated AD bank to the Director, Balance of Payments Statistics Division, Department of Statistics and Information Systems (DSIM), Reserve Bank of India, Bandra-Kurla Complex, Mumbai – 400 051.
(c) The borrower can draw-down the loan only after obtaining the LRN from DSIM, Reserve Bank.
(d) Borrowers are required to submit ECB-2 Return certified by the designated AD bank on monthly basis so as to reach DSIM, Reserve Bank within seven working days from the close of month to which it relates.
Please note that previous returns relating to ECB viz. ECB 3 – ECB 6 have been discontinued with effect from January 31, 2004.
Under automatic approval route , the following futher procedures have to be adhered :
* Board Resolution towards the ECB application.
* Loan Agreement to be entered with Recognized Lender.
* Documents related to application of LRN (Loan Registration Number) by filing Form 83 in duplicate duly certified by any Practicing Professional
* The Certificate of Due Diligence to be submitted by the Overseas Organizations / Individual Lender to AD Bank of Indian company (Borrower)
* Form 83 duly filled
* No Objection by AD Category I bank in case of creation of charge on immovable property if any.
* ECB Return - 2 on monthly basis once ECB is availed.
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