RBI Policy: Cos can park unused overseas debt with banks till Mar 1

Informist, Wednesday, Apr 7, 2021


MUMBAI – The Reserve Bank of India has today, allowed companies to park their unutilised external commercial borrowing proceeds in term deposits with authorised dealer category-I banks till Mar 1, provided that they are borrowed on or before Mar 1, 2020.


Previously, these companies were allowed to place external borrowing proceeds in term deposits with authorised dealer category-I banks for a maximum period of 12 months.


External commercial borrowings are loans that Indian companies take from non-resident lenders in a foreign currency.  


The central bank has provided the one-time relief for companies as these borrowers are finding it difficult to utilise these borrowed loans due to COVID-19 led restrictions, according to a press release from RBI. The detailed guidelines will be issued separately, the RBI said.  End


Reported by Ajay Ramanathan

Edited by Michael Correya



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