RBI eases ECB rules for non-bank asset finance cos

NBFC-AFCs are allowed to avail of ECB under the automatic route from all recognised lenders as per the extant ECB guidelines with minimum average maturity period of five years in order to finance the import of infrastructure equipment for leasing to infrastructure projects. Such ECBs including outstanding ECBs under the automatic route can be availed up to 75 per cent of owned funds of NBFC-AFCs,subject to a maximum of 200 million or its equivalent per financial year, it said.

ECBs by AFCs above 75 per cent of their owned funds will be considered under approval route by Reserve Bank and the currency risk of such ECBs is required to be hedged in full,the RBI said.