RBI recently update ECB guidelines as on 30th July, 2019. They allowed ECB for repayment of INR loans and for working capital with small riders. Please find the table below for a detailed update in the guidelines –
| No. | Earlier ECB Guidelines | 30th July Guidelines Revision |
| 1. | For Working Capital and General Cooperate purpose end use, ECB should be taken from foreign equity holder with MAMP of 5 years | Eligible borrowers will now be permitted to raise ECBs for the Working Capital and General Cooperate purposes end use from recognised lenders, except foreign branches/ overseas subsidiaries of Indian banks. |
| 2. | NBFCs were not allowed to take ECB for working capital purposes and general corporate purposes. | NBFCs can take ECB for working capital purposes and general corporate purposes but MAMP should be 10 years. |
| 3.
| ECBs for repayment of rupee loans end use was allowed only if taken from foreign equity holder. | A. ECB can be taken for repayment of Rupee loans availed domestically for capital expenditure but the MAMP should be 7 years (Even NBFCs are allowed). B. For repayment of Rupee loans availed domestically for purposes other than capital expenditure, the MAMP should be 10 years. |
| 4. | ECBs for repayment of rupee loans end use was allowed only if taken from foreign equity holder. | Corporates in manufacturing and infrastructure sector (classified as SMA-2 or NPA, under any one-time settlement with lenders) can avail ECB for repayment of Rupee loans availed domestically for capital expenditure |
You can find the latest guidelines update in this link – Latest RBI Update