SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

RBI eases norms of ECB refinancing

28 Aug 2014 Evaluate

The Reserve Bank of India (RBI) has eased norms to refinance external commercial borrowings (ECB). Central bank delegated power to banks to approve even those cases where the average maturity period of the fresh ECB is exceeding the residual maturity of the existing ECB under the automatic route.

However, the RBI suggested the banks that both existing and fresh ECBs should be in compliance with the applicable guidelines, all-in-cost of fresh ECB should be less than that of the all-in-cost of existing ECB and refinancing is to be undertaken before the maturity of the existing ECB. In addition, borrower should not be in the default / caution list of RBI and should not be under the investigation of the Directorate of Enforcement.

The RBI’s notification further highlighted that foreign branches or subsidiaries of Indian banks will not be permitted to refinance an existing ECB this way. This facility will be available even when existing ECB was raised under the approval route, subject to the amount of new ECB being eligible to be raised under the automatic route.  The new norms will come into force with immediate effect. Apex banks noted that all other aspects of the ECB policy such as eligible borrower, recognised lender, amount of ECB, permitted end-use, all-in-cost, reporting arrangements and average maturity period would remain unchanged.

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through:

×