On October 3, 2025, the Reserve Bank of India (RBI) released a draft of the External Commercial Borrowing (ECB) Framework under Foreign Exchange Management (Borrowing and Lending) Regulations, 2018. This draft aims to rationalize ECB regulations under FEMA, 1999. Salient features of the proposed regulations include:
* Borrowing limits linked to a borrower's financial strength, with ECBs raised at market-determined interest rates.
* Simplification of end-use restrictions and Minimum Average Maturity requirements.
* Expansion of the borrower and lender base eligible for ECB transactions.
* Simplification of reporting requirements.
The draft amendment to the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 is available on the RBI website. Comments and feedback on the draft regulations may be submitted through the 'Connect 2 Regulate' section on the RBI's website or emailed to ecbframework@rbi.org.in by October 24, 2025, with the subject line "Feedback on draft ECB framework”. The Press Release number is 2025-2026/1235. Contact information for the Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort, Mumbai - 400 001; Phone: 022 - 2266 0502; Website: www.rbi.org.in; email: helpdoc@rbi.org.in. Ajit Prasad, Deputy General Manager (Communications) is the contact person.
Key Entities Referenced
Reserve Bank of India: The central bank, responsible for drafting and issuing the regulations.
Foreign Exchange Management (Borrowing and Lending) Regulations, 2018: Regulations governing External Commercial Borrowing (ECB) under FEMA.
Foreign Exchange Management Act, 1999 (FEMA): The Act under which the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 are issued.
Statement on Developmental and Regulatory Policies: A statement issued by the Reserve Bank of India that provides the basis for rationalizing regulations pertaining to External Commercial Borrowing (ECB).
प्रेस प्रकाशनी PRESS RELEASE
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
वेबसाइट
:
www.rbi.org.in/hindi
संचार वर्भाग, केंद्रीय कायाालय, शहीद भगत ससिंह मागा, फोटा, म िंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
October 03, 2025
Draft External Commercial Borrowing Framework under Foreign Exchange
Management (Borrowing and Lending) Regulations, 2018
As announced in the Statement on Developmental and Regulatory Policies dated
October 01, 2025, it has been decided to rationalize regulations pertaining to External
Commercial Borrowing (ECB) included in the Foreign Exchange Management
(Borrowing and Lending) Regulations, 2018 issued under FEMA, 1999. Salient
features of the proposed regulations are as under:
a) The borrowing limits are proposed to be linked to a borrower’s financial
strength and ECB are proposed to be raised at market determined interest
rates.
b) The end-use restrictions and Minimum Average Maturity requirements are
proposed to be simplified.
c) The borrower and lender base eligible for ECB transactions is proposed to be
expanded to enhance opportunities of credit flow.
d) Reporting requirements are being simplified to ease compliance obligations.
The draft amendment to the Foreign Exchange Management (Borrowing and
Lending) Regulations, 2018 pertaining to the ECB framework is available on the RBI
website for public response.
Comments/ feedback on the draft regulations may be submitted through the
respective link under the ‘Connect 2 Regulate’ Section available on the RBI’s website
or may be forwarded via ecbframework@rbi.org.in by October 24, 2025, with the
subject line “Feedback on draft ECB framework”.
Ajit Prasad
Press Release: 2025-2026/1235 Deputy General Manager
(Communications)