External Commercial Borrowings are commercial loans raised by eligible resident entities from recognized non-resident entities. External Commercial Borrowings are governed by the Foreign Exchange Management (Borrowing or Lending in Foreign Currency) Regulations, 2000 issued by Reserve Bank of India and these regulations have been amended from time to time considering changes in India?s macro-economic scenario. Apart from issuing Regulations, Reserve Bank of India has been issuing Master Directions on various aspects connected with foreign exchange management. Reserve bank of India though its circulars issued on 19.9.2018 and 3.10.2018 has amended its Master Direction. By these circulars External Commercial Borrowing policy has been liberalied. All the measures have been aimed at raising foreign exchange inflow, which is a part of a larger strategy to bring the bridge the current account deficit and the depreciation of the Indian currency.
Depreciation, External Commercial Borrowings, Foreign Exchange, Liberalization, Rupee
Dr. S. Sethuram "External Commercial Borrowings: An Analysis Of The Liberalisation Policy " Iconic Research And Engineering Journals Volume 2 Issue 5 2018 Page 51-53
Dr. S. Sethuram "External Commercial Borrowings: An Analysis Of The Liberalisation Policy " Iconic Research And Engineering Journals, 2(5)