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RBI Rationalises External Commercial Borrowing Framework- Wider Access, Greater Flexibility, Market-Linked Pricing February 26, 2026
Published in: Alerts
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The Reserve Bank of India has notified the Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026, significantly liberalising the External Commercial Borrowing (ECB) regime. The amendments broaden the pool of eligible borrowers and recognised lenders, replace the all-in-cost cap with a market-linked benchmark, standardise minimum maturity requirements, enhance borrowing limits, and introduce procedural relaxations including streamlined reporting.
With clearer end-use norms, recognition of arm’s length principles in related-party ECBs, and a structured framework for compliance and borrower traceability, the revised regulations aim to facilitate responsible capital inflows while strengthening regulatory oversight.
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