ECB Compliance
ECB Compliance
External Commercial Borrowings give Indian companies a chance to tap foreign capital at better interest rates and longer tenures. The real challenge isn’t raising the money—it’s staying compliant. RBI tracks every stage of an ECB, from obtaining the Loan Registration Number to monthly reporting and final repayment. One missed filing can lead to penalties, so the process needs tight control and clean documentation.
What We Assist With
• Eligibility check and guidance on the right ECB route
• Drafting and reviewing loan agreements
• Filing ECB Form and obtaining the LRN
• Monthly ECB-2 return filings and annual compliance
• Monitoring end-use rules and FEMA conditions
• Support for drawdowns, interest payments and repayments
• Handling changes like refinances, extensions and amendments
• Advisory for startups, NBFCs, manufacturing and service companies
Why ECB Matters
• Access to global funding at competitive rates
• Longer repayment options compared to domestic borrowing
• Helps with capex, expansion and strategic projects
• Allows diversification of funding sources
• Requires strict RBI compliance to avoid penalties or delays
Frequently Asked Questions
It’s a loan raised by an Indian company from a foreign lender under RBI’s External Commercial Borrowing framework.
Many entities qualify—companies, NBFCs, startup units, infrastructure firms and certain service providers—subject to RBI’s eligibility rules.
Most ECBs fall under the automatic route. Some cases, like higher-risk sectors or complex structures, may require RBI approval under the approval route.
The Loan Registration Number is issued by RBI after filing the initial ECB Form. No drawdown is permitted until the LRN is allotted.
ECBs can’t be used for real estate, land acquisition, capital market investments, or working capital in certain situations. RBI monitors this closely.