External Commercial Borrowing (ECB)

18/12/2009 23:17


ECB: any credit which is extended for 3 years or more is External Commercial Borrowing.

It is governed by Sec 6 of FEMA. 

It can be availed under Automatic Route or Approval Route. Through Automatic Route, approval of RBI / Government Of India is not required and this route is not permitted for individual, trusts, non-profit making organization.