The Reserve Bank of India (RBI) has proposed a significant easing of rules for External Commercial Borrowings (ECBs), aimed at making overseas fundraising simpler and more attractive for Indian companies. The draft framework, issued on October 3, 2025, seeks to rationalise the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 under FEMA, 1999. Advertisement

The announcement follows the RBI’s Statement on Developmental and Regulatory Policies made on October 1. The central bank said the revisions were designed to improve credit flows to corporates while cutting down on unnecessary compliance requirements.

Key proposals

The draft framework highlights four major changes:

Borrowing limits tied to financial strength: Instead of a uniform borrowing cap, companies will be

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