RBI notifies Revised Format of ECB-2 Return for reporting of External Commercial Borrowing (ECBs) from month ending June, 2018

RBI notifies Revised Format of ECB-2 Return for reporting of External Commercial Borrowing (ECBs) from month ending June, 2018

June 13, 2018 Industry Specific 0

The Reserve Bank of India (“RBI”) in Circular No. 29 dated 7th June, 2018 has intimated the Authorized Dealers Category – I Banks (AD) regarding modification of Form ECB – 2. Going forward, from the month ending June 2018, the entities having External Commercial Borrowing/s will be required to file monthly report on actual external commercial borrowing transactions through the ADs using the revised format of Form ECB-2.

Background

As per Regulation 2.12.3 of the Master Direction – External Commercial Borrowings, Trade Credit, Borrowing and Lending in Foreign Currency by Authorised Dealers and Persons other than Authorised Dealers, the borrowers are required to report actual ECB transactions through Form ECB 2 through the AD Category I bank on monthly basis.

RBI has further clarified that any lapse at the time of filing the return or failure to adhere to the time line of its submission shall be considered to be contravention of the provisions of Foreign Exchange Management Act, 1999.

The revised ECB-2 form is attached for reference.

For further details, please refer to the hyperlink.

SourceReserve Bank of India

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