External Commercial Borrowings

• Borrowers are required to report all ECB transactions to the RBI on a monthly basis through an AD Category - I Bank in the form of ECB 2 Return.
• Return to be filed on monthly basis.
• The revised ECB 2 Return simplifies disclosure of hedging details into two baskets – financial and natural and requires disclosure of only the following:
  • Outstanding principal ECB amount and the currency thereof;
  • Notional value and percentage of outstanding ECB amount of financial hedge(s) as well as natural hedge; and
  • Annualised percentage cost of financial hedge(s) for ECB.