Relaxing the ECB norms, the RBI today said NBFCs operating as infrastructure finance companies (IFCs) can now avail the overseas borrowings up to 75 percent of their owned funds without its approval.
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"On a review, it has been decided to enhance the ECB limit for NBFC-IFCs under the automatic route from 50 percent of their owned funds to 75 percent of their owned funds, including the outstanding ECBs," the RBI said.
However, NBFC-IFCs desirous of availing external commercial borrowings (ECBs) beyond 75 percent of their owned funds would require the approval of the RBI and will, therefore, be considered under the approval route.
The RBI move is expected to help such infrastructure finance companies to raise overseas funds at attractive rates. The Planning Commission envisages the need for investment of USD one trillion to build the country's infrastructure during the Five Year Plan which began this fiscal. The Commission expects half of the funds to come from the private sector.
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