India amends ECB loan rules

It expanded the list of recognised lenders and simplified requirements for eligibility.

India has amended regulations surrounding external commercial borrowing (ECB) loans, including an expanded scope of recognised lenders.

Under the revised ECB regulations, recognised lenders are expanded to include all persons (including individuals) that are residents outside India, according to an analysis by Norton Rose Fulbright.

It also includes a branch outside India of an entity whose lending business is regulated by the Reserve Bank of India (RBI), or a financial institution or its branch in the International Financial Services Centre (IFSC).

India has only one IFSC at the moment, GIFT City in Gujarat. The zone provides financial services to non-residents and residents in foreign currencies.

The revised ECB regulations also simplify requirements on who can be eligible borrowers, allowing any person who is a resident in India (other than an individual) and who is incorporated, established, or registered under Indian legislation to avail of the ECB loans.