Relief for pandemic-hit external commercial borrowers who failed to utilise proceeds

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Reserve Bank on Wednesday stated unutilised External Commercial Borrowing (ECB) proceeds drawn down earlier than March 1, 2020, could be parked in time period deposits with banks in India prospectively up to March 1, 2022, in a reduction to borrowers who couldn’t utilise the proceeds due to lockdown.

Under the extant ECB framework, borrowers are allowed to place ECB proceeds in time period deposits with banks in India for a most interval of 12 months.

“In view of the difficulty faced by borrowers in utilising already drawn down ECBs due to COVID-19 pandemic induced lockdown and restrictions, it has been decided to relax the above stipulation as a one-time measure, with a view to provide relief,” the RBI stated in its assertion on developmental and regulatory insurance policies.

Accordingly, unutilised ECB proceeds drawn down on or earlier than March 1, 2020, could be parked in time period deposits with AD category-I banks in India prospectively up to March 1, 2022, it stated.

The central financial institution might be issuing tips on this regard individually.

Meanwhile, the RBI stated the Financial Inclusion Index (FI Index) might be printed yearly in July for the monetary 12 months ending earlier March.

Financial inclusion has been considered as a key enabler for reaching inclusive and sustainable growth worldwide. This has been a thrust space for authorities, Reserve Bank and different regulators, with numerous steps having been taken and important progress made through the years, the RBI stated.

The Reserve Bank will assemble and periodically publish the FI Index to measure the extent of economic inclusion within the nation. The FI Index could be primarily based on a number of parameters and shall replicate the broadening and deepening of economic inclusion within the nation.

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