RBI relaxes ECB norms for hotels, hospitals and software cos

The Reserve Bank on Thursday said it will consider allowing corporates in hotel, hospital and software sectors to raise overseas debts beyond $ 100 million, the stipulate limit now.

The Reserve Bank on Thursday said it will consider allowing corporates in hotel, hospital and software sectors to raise overseas debts beyond $ 100 million, the stipulate limit now.

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"...it has now been decided to consider applications from the corporates in the hotel, hospital and software sectors to avail of ECB beyond $ 100 million under the approval route, for foreign currency or rupee capital expenditure for permissible end-uses," RBI said in a notification.

At present, entities in the services sector - hotels, hospitals and software - are allowed to avail of external commercial borrowing (ECB) up to $ 100 million per financial year under the automatic route.

It, however, said that the proceeds of the ECB should not be used for acquisition of land, adding that the modifications to the ECB guidelines will come into force with immediate effect.