External Commercial Borrowings (ECB) denominated in Indian Rupees (INR) – Mobilisation of INR
Attention of Authorized Dealers Category – I (AD Cat – I) banks is invited to the Foreign Exchange Management (Foreign Exchange Derivative Contracts) Regulations, 2000 dated May 3, 2000 [Notification No. FEMA 25/RB-2000 dated May 3, 2000], as amended from time to time, A.P. Chaussure Adidas Yeezy 750 Boost Slip Calvin Klein Outlet Bikini Calvin Klein 2016 (DIR Series) Circular No.63 dated December 29, 2011 and A.P. Adidas Ultra Boost Homme Pas Cher Slip Calvin Klein Baratos (DIR Series) Circular No. Adidas Yeezy 350 Boost Pas Cher 25 dated September 3, 2014.
2. In terms of A.P. (DIR Series) Circular No. 25 dated September 3, 2014, recognised non-resident ECB lenders may extend loans in Indian Rupees subject to, inter alia, the lender mobilising Indian Rupees through a swap undertaken with an AD Cat-I bank in India. To facilitate ECB lending denominated in INR by overseas lenders, it has now been decided that such lenders may enter into swap transactions with their overseas bank which shall, in turn, enter into a back-to-back swap transaction with any AD Cat-I bank in India as per the procedure given below:
(i) The recognised non-resident lender approaches his overseas bank with appropriate documentation as evidence of an underlying ECB denominated in INR with a request for a swap rate for mobilising INR for onward lending to the Indian borrower.
(ii) The overseas bank, in turn, approaches an AD Cat-I bank for a swap rate along with documentation furnished by the customer that will enable the AD bank in India to satisfy itself that there is an underlying ECB in INR (scanned copies would be acceptable).
(iii) A KYC certification on the end client shall also be taken by the AD bank in India as a one-time document from the overseas bank.
(iv) Based on the documents received from the overseas bank, the AD bank in India should satisfy itself about the existence of the underlying ECB in INR and offer an indicative swap rate to the overseas bank which, in turn, will offer the same to the non-resident lender on a back-to-back basis.
(v) The continuation of the swap shall be subject to the existence of the underlying ECB at all times.
(vi) On the due date, settlement may be done through the Vostro account of the overseas bank maintained with its counterparty bank in India.
(vii) All other Operational Guidelines, Terms and Conditions as contained in the annex to A.P. (DIR Series) Circular No.63 dated December 29, 2011 governing hedging of ECBs denominated in INR shall apply, mutatis mutandis.
(viii) The concerned AD Cat-I bank shall keep on record all related documentation for verification by Reserve Bank.