In more liquidity easing measures, the Reserve Bank has liberalised the end-use stipulations for the External Commercial Borrowings both for corporates as well as liquidity starved non-banking lenders.
The central bank in a statement yesterday said that liberalisation will be applicable to ECBs taken for working capital, general corporate purpose loans or repayment of rupee loans.
Corporate borrowers will be able to avail of ECBs to repay rupee loans taken for Capital expenditures if they are into manufacturing or infrastructure building and classified as Special Mention Account, SMA-2 or Non-Performing Asset, under any one-time settlement arrangement with lenders.
The RBI also issued a revised circular for bankers capturing the changes.
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