The Reserve Bank of India (RBI) has amended ECB framework clarifying that any widely accepted interbank rate or alternative reference rate (ARR) applicable to the currency of borrowing may be used as a benchmark rate in case of foreign currency denominated ECB.
For existing ECBs and TCs linked to London Interbank Offered Rate (LIBOR), the existing all-in-cost ceiling has been revised from 450 bps to 550 bps and from 250 bps to 350 bps respectively, over the ARRs.
For new foreign currency ECBs and TCs, the all-in-cost ceiling has been revised from 450 bps to 500 bps and from 250 bps to 300 bps, respectively, over the ARRs.
