Draft ECB Reforms
On October 3, 2025, the Reserve Bank of India (RBI) issued the draft Foreign Exchange Management (Borrowing and Lending) (Fourth Amendment) Regulations, 2025 (“Draft Amendment”). The Draft Amendment seeks to revise and comprehensively reform the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 (“Current ECB Regime”). Among other changes, the Draft Amendment proposes to:
- increase the borrowing limits;
- broaden the categories of eligible borrowers and recognized lenders;
- simplify reporting requirements; and
- rationalize the list of permissible end-uses under the Current ECB Regime.
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