ECB norms eased for infrastructure finance firms

The Reserve Bank of India (RBI) has permitted infrastructure finance companies (IFCs) to raise funds through external commercial borrowings (ECBs) of up to 50 per cent of net-owned funds without approval.

“As a measure of liberalization of the existing procedures, it has been decided to permit IFCs to avail of ECBs, including the outstanding ECBs, up to 50% of their owned funds under the automatic route, subject to their compliance with the prudential guidelines already in place,’’ RBI said.

ECBs by IFCs above 50 per cent of their owned funds would require RBI clearance and will, therefore, be considered under the approval route, it added.

In its April monetary policy, RBI had relaxed some norms for infrastructure lending to meet financing needs.