The Reserve Bank of India (RBI) on July 07, 2022, issued a notice to get the attention of Authorised Dealer Category-I (AD Cat-I) banks invited to the Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 [Notification no. FEMA 3(R)/2018-RB dated December 17, 2018] and Master Direction - Risk Management and Inter-Bank Dealings dated July 05, 2016, as amended from time to time. As announced in paragraph 4 of the press release on “Liberalisation of Forex Flows” dated July 06, 2022, AD Cat-I banks can utilise the funds raised from overseas foreign currency borrowings between July 08, 2022, and October 31, 2022 (both dates included) in terms of paragraph Part-C(5)(a) of the Master Direction - Risk Management and Interbank Dealings dated July 05, 2016, as amended from time to time, for lending in foreign currency to constituents in India. Such lending shall be subject to the end-use prescriptions as applicable to External Commercial Borrowings (ECBs) in terms of paragraph 2.1(viii) of the Master Direction - External Commercial Borrowings, Trade Credits and Structured Obligations dated March 26, 2019, as amended from time to time. This facility will be available till the maturity/repayment of the overseas foreign currency borrowings.
[RBI/2022-23/88]
