Corporates and institutions which propose to raise foreign currency loans under the Foreign Currency - USD three million Scheme will now have to submit their applications for approval to the Reserve Bank of India. The applications will have to be made in Form ECB6, in duplicate, direct to the Chief General Manager, Exchange Control Department, IMD-II, Reserve Bank of India, Central Office, Mumbai 400001. Application forms (ECB6) are available with the regional offices of the Reserve Bank of India. Details of drawal, utilisation and repayments, will have to be reported by the borrowers to the concerned regional offices of the Reserve Bank as at present.

So far Indian entities desirous of raising foreign cur rency loans up to a maximum amount of USD three million or its equivalent were required to obtain the approvals from the Government of India, Ministry of Finance. The approvals were subject, inter alia, to the conditions that the loan should be for a minimum period of three years and no other loans under the scheme should be outstanding.

Alpana Killawala
Deputy General Manager

Press Release : 1996-97/396