NEW Barandbench
Mon 17 Aug 2026 06:40:02 PM
RBI liberalises ECB: Wider access, greater flexibility, and new guardrails
SUMMARY
The Reserve Bank of India has significantly liberalised its External Commercial Borrowings (ECB) framework to boost foreign capital inflows. Key changes include expanding the list of eligible borrowers, raising borrowing limits, and allowing more end-use purposes including working capital and general corporate purposes. The all-in-cost ceiling has been raised to benchmark rate plus 500 basis points. However, RBI introduced guardrails mandating hedging requirements for certain categories and maintaining restrictions on real estate and stock market investments to ensure financial stability.