External Commercial Borrowings (ECBs) allow Indian businesses to raise debt from overseas lenders at competitive rates. However, ECBs are strictly regulated by the RBI, with clear guidelines on purpose, maturity, and reporting. Companies must ensure that every ECB is aligned with these rules to prevent legal and financial risks. Transparent documentation, timely reporting, and adherence to approved end-uses are key. Proper management of ECBs not only safeguards the company from penalties but also strengthens trust with lenders and investors.
Dodging Rules on Foreign Loans and Export Advances: A Costly Misstep for Companies. In today’s globalized business landscape, companies often turn to cross-border funding and export-related payments to manage working capital, expand operations, or secure international buyers. However, recent regulatory…
