The Reserve bank of India vide its notification dated 7th April 2021 has announced that the unutilised external commercial borrowing (ECB) proceeds drawn down before March 1, 2020, can be parked in term deposits with banks in the country, up to March 1, 2022 in a relief to borrowers who could not utilise the proceeds due to lockdown.
Under the extant ECB framework, borrowers are allowed to place ECB proceeds in term deposits with banks in India for a maximum period of 12 month, however based on requests from stakeholders, including Industry associations, and with a view to providing relief to the ECB borrowers affected by the Covid-19 pandemic, it has been decided to relax the above stipulation as a one-time measure.
