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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

 

 

Cogencis news is now Informist. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

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