Master Direction – External Commercial Borrowings, Trade Credits and Structured Obligations (Updated as on December 22, 2023) (Supersedes Master Direction – External Commercial Borrowings, Trade Credit, Borrowing and Lending in Foreign Currency by Authorised Dealers and Persons other than Authorised Dealers (Updated as on November 22, 2018))

RBI Master Direction Link

Master Direction – External Commercial Borrowings, Trade Credits and Structured Obligations

This Master Direction outlines the framework for External Commercial Borrowings (ECBs), Trade Credits, and Structured Obligations.

It consists of three parts:

Part I – External Commercial Borrowings Framework: This part deals with the framework for ECBs, including the approval route, all-in-cost, benchmark rate, and ECB liability-equity ratio.

Part II – Trade Credits Framework: This part outlines the framework for Trade Credits, including the approval route and all-in-cost.

Part III – Structured Obligations: This part deals with the framework for Structured Obligations.

The Master Direction also defines important terms used, including:

Acronyms: Definitions of acronyms used in the Master Direction.

Key Terms: Definitions of key terms such as all-in-cost, approval route, authorised dealer, automatic route, benchmark rate, and more.

The Master Direction has been updated several times, with the latest updates being on December 22, 2023, September 30, 2022, August 01, 2022, June 09, 2022, December 10, 2021, and April 12, 2021.

Chat with the Master Direction:

Download: Master Direction – External Commercial Borrowings, Trade Credits and Structured Obligations (Updated as on December 22, 2023) (Supersedes Master Direction – External Commercial Borrowings, Trade Credit, Borrowing and Lending in Foreign Currency by Authorised Dealers and Persons other than Authorised Dealers (Updated as on November 22, 2018))