The Reserve Bank of India (RBI) in its Monetary Policy Committee review today, 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. The measure was announced to provide relief to borrowers who could not utilise the proceeds due to the impact of COVID-19. External commercial borrowings are simply commercial loans that are raised by eligible resident entities from recognised non-resident entities according to the Reserve Bank. The entities must conform to parameters such as permitted and non-permitted end-uses, minimum maturity, etc.
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