The Reserve Bank of India (RBI) has proposed a revamp of its External Commercial Borrowing framework to rationalise regulations. (Photo source: NDTV Profit) Show Quick Read Summary is AI Generated. Newsroom Reviewed

The Reserve Bank of India (RBI) has proposed a revamp of its External Commercial Borrowing (ECB) framework to rationalise regulations, as per a statement on Friday.

Under the proposed framework, borrowing limits would be linked to a company's financial strength, while ECBs would be raised at market-determined interest rates. The RBI has also suggested simplifying end-use restrictions and minimum average maturity requirements to provide borrowers with more flexibility.

Another key change, as proposed by the framework, is the expansion of both the borrower and lender base

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