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The central bank has delegated the powers to banks, which are category-I authorised dealers in foreign currency, to approve changes in the drawdown or repayment schedule of the overseas borrowings already availed.
Banks would be allowed to approve changes in the schedule of drawdown or repayment subject to the original average maturity period remaining the same. Any elongation or rollover in the repayment on expiry of the original maturity of the overseas borrowing would require prior approval of RBI.
In a notification, RBI said banks have also been allowed to approve changes in the currency of borrowing, if the borrower company desired, subject to all other terms and conditions of the ECB remaining unchanged. Banks will have to ensure that the proposed currency of borrowing is freely convertible. The liberalisation in the ECB policy is with immediate effect.
Borrowing companies have also been allowed to change the bank that would be handling the transactions pertaining to the overseas borrowings after obtaining a no-objection certificate (NOC) from the existing authorised dealer bank.
Banks have also been empowered to allow change in the name of the borrower companies subject to production of supporting documents evidencing the change in the name from the Registrar of Companies.
All other aspects of the ECB policy, such as $500 million limit per company per financial year under the automatic route, eligible borrower, recognised lender, end-use, all-in-cost ceiling, average maturity period, prepayment, refinancing of existing ECB and reporting arrangements remain unchanged.
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