RBI tweaks ECB norms to stem falling rupee

Moneycontrol Bureau

In an effort to stem rupee's downward spiral, the Reserve Bank of India (RBI) on Wednesday, directed Indian companies to bring back offshore funds, raised through external commercial borrowings (ECBs) for the purpose of domestic business expenditure. Those funds need to be parked with Indian banks.

"The proceeds of the ECB raised abroad for rupee expenditure in India, such as, local sourcing of capital goods, on-lending to self-help groups or for micro credit, payment for spectrum allocation etc. should be brought immediately for credit to rupee accounts with AD category I banks in India,