RBI eases rules for ECB lenders to extend loans in rupees

MUMBAI: Relaxing norms for external borrowings, the RBI on Wednesday allowed ECB lenders to now extend loans in Indian rupees to domestic businesses.

"With a view to providing greater flexibility for structuring of external commercial borrowings (ECB) arrangements, it has been decided that recognised non-resident ECB lenders may extend loans in Indian rupees," the RBI said.

It said the lender would have to follow certain conditions, including currency swaps with authorised banks.