External Commercial Borrowings (ECB) Policy – Review of all-in-cost ceiling

External Commercial Borrowings (ECB) Policy – Review of all-in-cost ceiling

 

Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to A.P. (DIR Series) Circular No. 99 dated March 30, 2012 relating to ECB.

2. It has been decided that the all-in-cost ceiling as specified in A.P. (DIR Series) Circular No. 99 dated March 30, 2012 will continue to be applicable until further review.


:

Average Maturity Period	All-in-cost over 6 month LIBOR*
Three years and up to five years	350 bps
More than five years	500 bps
* for the respective currency of borrowing or applicable benchmark

3. All other aspects of ECB policy remain unchanged and AD Category – I banks may bring the contents of this circular to the notice of their constituents and customers.

Reference A.P. (DIR Series) Circular No. 40 dated October 09, 2012