“It has been decided to simplify the procedure by delegating powers to the...banks to approve even those cases where the average maturity period of the fresh ECB is exceeding the residual maturity of the existing ECB under the automatic route but subject to some conditions,” RBI said in a notification on Wednesday.
Banks need to undertake the refinancing before the maturity of the existing ECB while consent of the exiting lender should be available.
Both the existing and fresh ECBs should be in compliance with the applicable guidelines; All-in-cost of fresh ECB should be less than that of the all-in-cost of existing ECB, RBI said.
Borrower should not be in the default / caution list of RBI and should not be under the investigation of the Directorate of Enforcement.
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