RBI relaxes ECB prepayment norms
RBI relaxes ECB prepayment norms To provide greater flexibility to corporates in managing their liquidity and interest costs, the existing limit for prepayment of external commercial borrowings (ECB) has been enhanced from USD 400 million to USD 500 million. Accordingly, banks may allow prepayment of ECBs up to USD 500 million without prior approval of the Reserve Bank, subject to compliance with the minimum average maturity period as applicable to the loan. The above changes shall come into force with immediate effect and is subject to review.
