What changed
An eligible borrower can raise ECB up to the higher of USD 1 billion or 300% of its net worth. The all-in-cost ceiling has been removed. The minimum average maturity is 3 years, or 1 to 3 years for manufacturing companies borrowing up to USD 150 million. Form ECB 1 is filed through the AD bank before the first drawdown, and Form ECB 2 within 7 days of each month end.
Who is affected
Companies and LLPs borrowing from overseas lenders.
Source
RBI, Notification FEMA 3(R)(5)/2026-RB dated 9 February 2026. The notification text is on the RBI website.
Effective: 16 Feb 2026 · Note published · Last reviewed 26 September 2026
Related on this site
This note summarises a public notification for general information. It is not professional advice and does not cover every condition or exception, and the rule can change again by a later notification. Read the notification itself before acting on it, or contact the firm with a question on your own facts.