A.P. (DIR Series) (2003-04) Circular No. 60, dated 31-1-2004

Draw-down

Repayment/Payment

Code

BOX 1: Purpose of Utilisation Code

Code

BOX 2 : Source of Funds for remittance

Code

If more than one equal instalment

If more than one equal

All-in-cost Ceilings over six month LIBOR*

All-in-cost Ceilings over six month LIBOR*

External Commercial Borrowings (ECBs)

Preamble

1. With a view to replace temporary measures relating to External Commercial Borrowings (ECBs) announced on November 14, 2003 with more transparent and simplified policies and procedures, a review of the ECB guidelines has been undertaken. This review is based on the current macro-economic situation, challenges faced in external sector management and the experience gained so far in administering ECB policy.

ECB are a key component of India’s overall external debt which includes, inter alia, external assistance, buyers’ credit, suppliers’ credit, NRI deposits, short-term credit and Rupee debt. ECB guidelines, therefore, need to be assessed in the backdrop of various external debt sustainability indicators relevant to emerging economies in order to explore the head-room available for more external debt. An analysis of various indicators of external debt (e.g. short-term debt, debt to GDP ratio, debt servicing ratio, vis-à-vis the proportion of debt to non-debt capital flows) indicates that there is some head-room for increase in the magnitude of debt especially for real investment activity. As a part of overall management of the external sector, there is a case for putting in place a liberalised ECB policy provided there is no bunching of residual maturity of ECB in any particular year and the option of restricting the capital flows in future, if need be, is kept open.

ECB refer to commercial loans, [in the form of bank loans, buyers’ credit, suppliers’ credit, securitised instruments (e.g. floating rate notes and fixed rate bonds)] availed from non-resident lenders with minimum average maturity of 3 years. Until November 14, 2003, any legal entity such as a corporate/financial intermediary was an eligible borrower. In view of its implication for potential systemic risks, ECB availed by financial intermediaries need to be distinguished from those availed by corporates. Furthermore, banks have the facility (i) to borrow from its head office or branch or correspondents outside India up to 25 per cent of its unimpaired Tier-I Capital or US $ 10 million, whichever is higher, (ii) to borrow from its head office or branch or correspondents outside India without limit for the purpose of replenishing Rupee resources (not for investment in call money or other markets) and (iii) to avail lines of credit from a bank/financial institution outside India without any limit for the purpose of granting pre-shipment/post-shipment credit to its constituents.

2. Accordingly, the revised ECB guidelines are set out below. ECB can be accessed under two routes, viz., (i) Automatic Route outlined in paragraph 2(A) and (ii) Approval Route indicated in paragraph 2(B).

(A) Automatic Route

ECB for investment in real sector -industrial sector, especially infrastructure sector-in India will be under Automatic Route, i.e. will not require RBI/Government approval. In case of doubt as regards eligibility to access Automatic Route, applicants may take recourse to the Approval Route.

(i) Eligible borrowers - Corporates registered under the Companies Act except financial intermediaries (such as banks, financial institutions (FIs), housing finance companies and NBFCs) are eligible.

(ii) Recognised Lenders - Borrowers can raise ECB from internationally recognised sources such as (i) international banks, international capital markets, multilateral financial institutions (such as IFC, ADB, CDC etc.), (ii) export credit agencies and (iii) suppliers of equipment, foreign collaborators and foreign equity holders.

(iii) Amount and Maturity -

(a) ECB up to US D 20 million or equivalent with minimum average maturity of three years

(b) ECB above US D 20 million and up to US D 500 million or equivalent with minimum average maturity of five years

(c) ECB up to US D 20 million can have call/put option provided the minimum average maturity of 3 years is complied before exercising call/put option.

(iv) All-in-cost ceilings - All-in-cost includes rate of interest, other fees and expenses in foreign currency except commitment fee, pre-payment fee, and fees payable in Indian Rupees. Moreover, the payment of withholding tax in Indian Rupees is excluded for calculating the all-in-cost.

The all-in-cost ceilings for ECB will be indicated from time to time. The following ceilings will have immediate effect and will be valid till reviewed.

Minimum Average Maturity Period	All-in-cost Ceilings over six month LIBOR*
Three years and up to five years	200 basis points
More than five years	350 basis points

*For the respective currency of borrowing or applicable benchmark.

(v) End-use -

(a) ECB can be raised only for investment (such as import of capital goods, new projects, modernization/expansion of existing production units) in real sector - industrial sector including small and medium enterprises (SME) and infrastructure sector - in India. Infrastructure sector is defined as (i) power, (ii) telecommunication, (iii) railways, (iv) road including bridges, (v) ports, (vi) industrial parks and (vii) urban infrastructure (water supply, sanitation and sewage projects);

(b) Utilization of ECB proceeds is permitted in the first stage acquisition of shares in the disinvestment process and also in the mandatory second stage offer to the public under the Government’s disinvestment programme of PSU shares.

(d) Utilization of ECB proceeds is not permitted in real estate. The term ‘real estate’ excludes development of integrated township as defined by Ministry of Commerce and Industry, Department of Industrial Policy and Promotion, SIA (FC Division), Press Note 3 (2002 Series, dated 04.01.2002).

(vi) Guarantees - Guarantee/standby letter of credit or letter of comfort by banks, financial institutions and NBFCs relating to ECB is not permitted.

(vii) Security - The choice of security to be provided to the lender/supplier is left to the borrower. However, creation of charge over immovable assets and financial securities, such as shares, in favour of overseas lender is subject to Regulation 8 of Notification No. FEMA 21/RB-2000 dated May 3, 2000 and Regulation 3 of Notification No. FEMA 20/RB-2000, dated May 3, 2000, respectively.

(viii) Parking of ECB proceeds overseas - ECB proceeds should be parked overseas until actual requirement in India.

(ix) Prepayment - Prepayment of ECB up to US D 100 million is permitted without prior approval of RBI, subject to compliance with the stipulated minimum average maturity period as applicable for the loan.

(x) Refinance of existing ECB - Refinancing of existing ECB by raising fresh loans at lower cost is permitted subject to the condition that the outstanding maturity of the original loan is maintained.

(xi) Debt Servicing - The designated Authorised Dealer (AD) has the general permission to make remittances of instalments of principal, interest and other charges in conformity with ECB guidelines issued by Government/RBI from time to time.

(xii) Procedure - Borrower may enter into loan agreement with recognised overseas lender for raising ECB under Automatic Route without prior approval of RBI. The borrower may note to comply with the reporting arrangement under paragraph 2(C)(i). The primary responsibility to ensure that ECB raised/utilised are in conformity with the ECB guidelines and the Reserve Bank regulations/directions/circulars is that of the concerned borrower.

(B) Approval route

The following types of proposals for ECB will be covered under the Approval Route.

(i) Eligible borrowers

(a) Financial institutions dealing exclusively with infrastructure or export finance such as IDFC, ILFS, Power Finance Corporation, Power Trading Corporation, IRCON and EXIM Bank will be considered on a case by case basis.

(b) Banks and financial institutions which had participated in the textile or steel sector restructuring package as approved by the Government will also be permitted to the extent of their investment in the package and assessment by RBI based on prudential norms. Any ECB availed for this purpose so far will be deducted from their entitlement.

(c) Cases falling outside the purview of the automatic route limits and maturity period indicated at paragraph 2(A)(iii)(a) and 2(A)(iii)(b).

(iii) All-in-cost ceilings - All-in-cost includes rate of interest, other fees and expenses in foreign currency except commitment fee, pre-payment fee, and fees payable in Indian Rupees. Moreover, the payment of withholding tax in Indian Rupees is excluded for calculating the all-in-cost.

The all-in-cost ceilings for ECB will be indicated from time to time. The following ceilings will have immediate effect and will be valid till reviewed.

Minimum Average Maturity Period	All-in-cost Ceilings over six month LIBOR*
Three years and up to five years	200 basis points
More than five years	350 basis points

*For the respective currency of borrowing or applicable benchmark.

(iv) End-use—

(a) ECB can be raised only for investment (such as import of capital goods, new projects, modernization/expansion of existing production units) in real sector-industrial sector including small and medium enterprises (SME) and infrastructure sector-in India. Infrastructure sector is defined as (i) power, (ii) telecommunication, (iii) railways, (iv) road including bridges, (v) ports, (vi) industrial parks and (vii) urban infrastructure (water supply, sanitation and sewage projects);

(c) Utilization of ECB proceeds is not permitted for on-lending or investment in capital market by corporates except for banks and financial institutions eligible under paragraph 2(B)(i)(a) and 2(B)(i)(b);

(v) Guarantees - Guarantee/standby letter of credit or letter of comfort by banks, financial institutions and NBFCs relating to ECB is not normally permitted. Applications for providing guarantee/standby letter of credit or letter of comfort by banks, financial institutions relating to ECB in the case of SME will be considered on merit subject to prudential norms.

(vi) Security - The choice of security to be provided to the lender/supplier is left to the borrower. However, creation of charge over immovable assets and financial securities, such as shares, in favour of overseas lender is subject to Regulation 8 of Notification No. FEMA 21/RB-2000 dated May 3, 2000 and Regulation 3 of Notification No. FEMA 20/RB-2000, dated May 3, 2000, respectively.

(vii) Parking of ECB proceeds overseas - ECB proceeds should be parked overseas until actual requirement in India.

(viii) Prepayment - Prepayment of ECB up to US D 100 million is permitted without prior approval of RBI, subject to compliance with the stipulated minimum average maturity period as applicable for the loan.

(ix) Refinance of existing ECB - Refinancing of outstanding ECB by raising fresh loans at lower cost is permitted subject to the condition that the outstanding maturity of the original loan is maintained.

(x) Debt Servicing - The designated AD has the general permission to make remittances of instalments of principal, interest and other charges in conformity with ECB guidelines issued by Government/RBI from time to time.

(xi) Procedure - Applicants are required to submit an application in form ECB (format in Annex I) through designated AD to the Chief General Manager-in-Charge, Foreign Exchange Department, Reserve Bank of India, Central Office, External Commercial Borrowings Division, Mumbai - 400 001 along with necessary documents.

(xii) Empowered Committee - RBI will set up an Empowered Committee to consider proposals coming under the approval route.

(i) Reporting Arrangements -

(a) With a view to simplify the procedure, submission of copy of loan agreement is dispensed with.

(b) Borrowers are required to submit Form 83 (format in Annex II), in duplicate, certified by the Company Secretary (CS) or Chartered Accountant (CA) to the designated AD. One copy is to be forwarded by the designated AD to the Director, Balance of Payments Statistics Division, Department of Statistical Analysis and Computer Services (DESACS), Reserve Bank of India, Bandra-Kurla Complex, Mumbai - 400 051 for allotment of loan registration number.

(d) Borrowers are required to submit ECB-2 Return (format in Annex III) on monthly basis certified by the designated AD so as to reach DESACS, RBI within seven working days from the close of month to which it relates.

(ii) Dissemination of Information - For providing greater transparency, information with regard to the name of the borrower, amount, purpose and maturity of ECB will be put on the RBI website by the next working day of the approval under Approval Route and on a monthly basis with a lag of one month to which it relates under Automatic Route.

Foreign Currency Convertible Bonds (FCCB)

3. The liberalisation made for ECB is also extended to FCCB in all respects.

4. Necessary amendments to the Foreign Exchange Management (Borrowing or Lending in Foreign Exchange) Regulations, 2000 dated May 3, 2000 and the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2000 dated May 3, 2000 are being issued separately.

5. The above amendments to ECB Policy will come into force with effect from February 1, 2004. These instructions superseding earlier instructions on ECB issued by RBI would be reviewed from time to time.

6. Authorised Dealers may bring the contents of this Circular to the notice of their constituents concerned.

7. The directions contained in this circular have been issued under Section 10(4) and Section 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999).

Annex I

FORM ECB

Application for raising External Commercial Borrowings under Approval Route

Instructions

The complete application should be submitted by the applicant through the designated authorised dealer to the Chief General Manager-In-Charge, Foreign Exchange Department, Central Office, ECB Division, Reserve Bank of India, Mumbai-400 001.

Documentation

Following documents, (as relevant) certified by authorised dealer, should be forwarded with the application:

(i) A copy of offer letter from the overseas lender/supplier furnishing complete details of the terms and conditions of proposed loan/credit arrangement.

(ii) A copy of the import contract, proforma/commercial invoice/bill of lading.

Part A

General information about the borrower

1. Name of the applicant

(BLOCK LETTERS)

Address

2. Status of the applicant

(i) Private Sector

(ii) Public Sector

Part B

Information about the proposed loan/credit

1. Details of the ECB

	Currency	Amount	US $ equivalent
(a)	Purpose of the loan
(b)	Nature of ECB [Please put (×) in the appropriate box]
(i)	Suppliers’ Credit
(ii)	Buyers’ Credit
(iii)	Syndicated Loan
(iv)	Export Credit
(v)	Loan from foreign collaborator/equity holder
	(with details of amount, percentage equity holding in the paid-up equity capital of the borrower company)
(vi)	FRN/Bonds
(vii)	Fixed Rate
(viii)	Line of Credit
(ix)	Commercial Bank of loan
(x)	Others (please specify)
(c)	Terms and conditions of the loan
(i)	Rate of interest
(ii)	Up-front fee
(iii)	Management fee
(iv)	Other charges, if any (Please specify)
(v)	All-in-cost
(vi)	Commitment fee
(vii)	Rate of penal interest
(viii)	Period of loan
(ix)	Details of call/put option, if any.
(x)	Grace/moratorium period
(xi)	Repayment terms (half-yearly/annually/bullet)
(xii)	Average maturity

2. Details of the lender

Name and address of the lender/supplier

3. Nature of security to be provided, if any.

Part C

Information about draw-down and repayments

Proposed Schedule
Draw-down		Repayment/Payment
Month	Year	Principal	Interest

Part D

Additional information

1. Information about the project
(i)	Name & location of the project		:
(ii)	Total cost of the project		:	Rs. US D
(iii)	Total ECB as a % of project cost		:
(iv)	Nature of the project		:
(v)	Whether appraised by financial institution/bank		:
(vi)	Infrastructure Sector		:
(a)		Power
(b)		Telecommunication
(c)		Railways
(d)		Roads including bridges
(e)		Ports
(f)		Industrial parks
(g)		Urban infrastructure - Water supply, Sanitation and Sewerage.
(vii)	Whether requires clearance from any statutory		:
	authority ? If yes, furnish the name of authority, clearance no. and date.

Part E

Certifications

1. By the applicant

We hereby certify that -

(i) the particulars given above are true and correct to the best of our knowledge and belief.

(ii) the ECB to be raised will be utilised for permitted purposes.

...................................................................................................

(Signature of Authorised Official of the applicant)

Place.......................................
Name:.....................................
Date........................................	STAMP
Designation..........................
Phone No. ............................
Fax .........................................
E-mail ....................................................................................................................................
...................................................................................................................................................

2. By the authorised dealer -

We hereby certify that -

(i) the applicant is our customer.

(ii) we have scrutinised the application and the original letter of offer from the lender/supplier and documents relating to proposed borrowing and found the same to be in order.

...................................................................

(Signature of Authorised Official)

Place .............................................................
Name ............................................................
Date................................................................	STAMP
Name of the Bank/branch...................
A.D.Code......................................................

Annex II

FORM 83

Reporting of loan agreement details under Foreign
Exchange Management Act, 1999

(for all categories and any amount of loan)

Instructions :

1. The format should be completed in duplicate and submitted to the Director, Department of Statistical Analysis & Computer Services, Balance of Payments Statistics Division, C-8/9, Bandra-Kurla Complex, Bandra (East), Mumbai-400 051 through designated Authorised Dealer within 7 days from the date of signing loan agreement between borrower and lender.

2. Do not leave any column blank. Furnish complete particulars against each item. Where any particular item is not applicable write “N.A.” against it.

3. All dates should be in format YYYY/MM/DD, such as 2004/01/21 for January 21, 2004.

4. Before forwarding form 83 to the Reserve Bank, the Authorised Dealer must properly scrutinise all the related original documents and ensure that form is complete in all respects and strictly in order as per latest rules.

5. If space is not sufficient for giving full information/particulars against any item, a separate sheet may be attached to the form and serially numbered as Annexure.

6. Firms/Companies obtaining sub-loans through DFIs/FIs/Banks/NBFCs etc. should not complete this form but approach the concerned financial institution directly for reporting.

For RBI (DESACS) Use only

Loan_key:

CS-DRMS Team

Received on

Action Taken on

Loan Classification

Agreement Details (To be filled by borrowers of External Commercial Borrowings)

Part A

Basic Details

Loan title/Project

Loan Identification Number (LIN)

No. and Date of RBI approval (if applicable)

Loan Key Number (allotted by RBI)

Agreement Date (YYYY/MM/DD)

Currency Name

Currency Code (SWIFT)

Amount (in FC)

(For RBI Use)

Guarantee Status

Guarantor (Name, Address,
contact number etc.)

(Use code as per Box 1)

Multi-Currency Type

Name and address of the Borrower (Block Letters)

Name and address of lender/foreign
supplier/lesser (Block Letters)

Contact Person’s Name:

Designation:

Phone No. :

Fax No. :

E-mail ID :

Country:

E-mail ID :

(For RBI DESACS use)

Borrower Category (Tick in appropriate box)

Lender’s Category

Public Sector Unit

Private Sector Unit

Detailed category (tick below)

Multi-lateral Institution

Bank

Foreign Government (Bilateral Agency)

NBFC

Reg. No.

Export Credit/Insurance Institution

Financial Institution (Other than NBFC)

Indian Commercial Bank branch working abroad

Non-Financial Corporation

Other Commercial Bank

Institution Serving Households

Supplier of Goods

Other (Specify)

Leasing Company/Finance Company

Foreign Collaborator/Foreign Equity Holder

(with details of amount and percentage holding in the paid-up equity capital of the borrower company)

International Capital Market

Other (Specify)

Please tick if a foreign holding company

Please tick in case the lender holds 10 per cent or more equity capital in borrower company

Specify Authorised Dealer’s Name, and bank code

Lender’s Reference/IBRD No. (if it is a IBRD loan)

Bank Code Part I:

Part II:

Fax :

E-mail ID:

Part B

Other Details

Loan approval Scheme (Tick in appropriate Box)		Maturity Details
Under Short-term credit/loans		Effective Date of the Loan
Automatic Route		Last Date of Disbursement
Approved by RBI		Maturity Date (Last payment date)
Financial Lease		Grace Period (Years. Months)		Years
Approved by Govt.
		Economic Sector/Industry Code (See Box 3)
Purpose of Borrowings Code (See box 2)
If Import, specify the Country of Import (if more than one country, attach details):
Type of Loan/Credit
Buyers’ Credit		Suppliers’ Credit
Line of Credit		Export Credit from Bilateral Sources
Commercial loan/Syndicated Loan (attach sheet for percentage distribution among lenders)		Securitised instruments - Bonds, ECP, FRN etc.
Financial Lease		Others (Specify)
Refinancing of old loans: LIN/Reg. No. of the old loan
Approval No. Date:		Amount refinanced:	Reason:
Hedging risks using	Interest rate swap	Currency swap	Others (specify)

Part C

Schedule of transactions

Interest Payment Schedule:
First Payment Date /		Number of Payments in a Year
Fixed Rate .
Floating Rate: Base	Margin	Cap Rate:	Floor Rate:

Schedule of Draw-Down

Tranche No.	Date (YYYY/MM/DD)	Currency	Amount	If more than one equal instalments
	(Please see note below)			Total Number of drawals	No. of drawals in a calendar year

Note: 1. In the case of Import of goods or services, date of Import may be furnished against date of draw down.

2. In the case of Financial Lease date of acquisition (Import) of the goods is to be mentioned as date of drawdown.

3. In the case of Securitised Instruments, date of issue may be shown as date of draw down

4. In case more than equal drawdown transactions are shown in a row above, date of first transaction to be mentioned.

Principal Repayment Schedule
Date (YYYY/MM/DD)	Currency		Amount in FC in			If more than one equal				Annuity
(First repayment date)			each transaction			instalments				Rate
						Number of		No. of		(if annuity
						instalments		payments in		payment)
								a calendar
								year

Please tick in appropriate Boxes if those options are there in the loan agreement :		Call Option:		Percent of Debt			Put Option		Percent of Debt
Can be executed after date (s)				/ /					/ /
Note: In the case of annuity payments, please indicate each equal instalment of principal and interest amount with rate. In the case of principal repayment using a percentage profile, percentages may also be indicated.
Penal Interest for late payment					Fixed % per annum or Base : Margin:
Commitment Charges					% per annum of : % of Undrawn Amount

Other Charges

Nature of	Expected Date	Currency	Amount	In case of many equal
Charge	of Payment			payments
(Specify)				No. of	Total number
				payments	of payments
				in a year

We hereby certify that the particulars given above are true and correct to the best of our knowledge and belief. No material information has been withheld and/or misrepresented.

Place : ......................
Date : ......................	Stamp	..........................................................................
		(Signature of Company Secretary)
		Name : ............................................................
		..........................................................................
		[For use of Authorised Dealer]

We certify that the borrower is our regular customer and enjoys substantial credit facilities with us.

Place : ......................
Date : ......................	Stamp	..........................................................................
		(Signature of Authorised Official)
		Name : ............................................................
		Designation :
		Name of the bank/branch ...................

Bank Code

BOX 1: Guarantee Status Code		BOX 2: Purpose of Borrowings Code
Sr.	Code	Description	Sr.	Code	Description
No.			No.
1	GG	Govt. of India Guarantee.	1	IC	Import of Capital goods
2	CG	Public sector Guarantee	2	IN	Import of non-Capital goods
3	PB	Public Sector Bank Guarantee.	3	AG	Acquisition of Goods
4	FI	Financial Institution Guarantee.	4	SL	Onward lending or sub-lending
5	MB	Multilateral/Bilateral Institution Guarantee.	5	RL	Local sourcing of Cap. goods(Rupee expenditure)
6	PG	Private Bank Guarantee	6	RC	Working Capital (Rupee Expenditure)
7	PS	Private Sector Guarantee	7	RP	Repayment of earlier loan
8	MS	Mortgage of Assets/Security	8	IP	Interest Payments
9	OG	Other Guarantee	9	PS	Payments for services
10	NN	Not Guaranteed	10	OT	Others

BOX 3 : Industry codes to be used

Industry Group Name	Industry Description	Code
Plantations	Tea	111
	Coffee	112
	Rubber	113
	Others	119
Mining	Coal	211
	Metal	212
	Others	219
Petroleum & Petroleum products		300
Manufacturing
Agricultural products (400)	Food	411
	Beverages	412
	Sugar	413
	Cigarettes & tobacco	414
	Breweries & distilleries	415
	Others	419
Textile products (420)	Cotton textile	421
	Jute & coir goods	422
	Silk & rayon	423
	Other textile	429
Transport equipment (430)	Automobiles	431
	Auto accessories & parts	432
	Ship-building equipments & stores	433
	Railway equipment & stores	434
	Others	439
Machinery & tools (440)	Textile machinery	441
	Agricultural machinery	442
	Machine tools	443
	Others	449
Metal & metal products (450)	Ferrous (iron & steel)	451
	Non-ferrous	452
	Special alloys	453
	Others	459
Electrical, electronic goods & machinery (460)	Electrical goods	461
	Cables	462
	Computer hardware & computer based systems	463
	Electronic valves, tubes & others	464
	Others	469
Chemicals & Allied products (470)	Fertilizers	471
	Dyes & dyes stuff	472
	Medicines & pharmaceuticals	473
	Paints & warnishing	474
	Soaps, detergents, shampoos, shaving product	475
	Others	479
Others of Mnf. (480)	Cement	481
	Other building materials	482
	Leather & leather products	483
	Wood products	484
	Rubber goods	485
	Paper & paper products	486
	Typewriters & other office equipment	487
	Printing & publishing	488
	Miscellaneous	489
Trading		500
Construction & turnkey projects		600
Transport		700
Utilities (800)	Power generation, transmission & distribution	811
	Others	812
Banking sector		888
Services		900
Telecommunication services		911
Software development services		912
	Technical engineering & consultancy services	913
	Tours & travel services	914
	Cold storage, canning & warehousing services	915
	Media advertising & entertainment services	916
Financial services		917
Transport services		919
Others (not classified elsewhere)		999

Annex III

ECB - 2

Reporting of actual transactions of ECB under Foreign
Exchange Management Act, 1999

(For all categories and any amount of loan)

Return for the Month of.

1. This return should be filled in for all categories of External Commercial Borrowings. It should be submitted within 7 working days from the close of the month through the designated Authorised Dealer to the Director, Department of Statistical Analysis and Computer Services, Balance of Payments Statistics Division, Reserve Bank of India, C-8/9, Bandra-Kurla Complex, Bandra (East), Mumbai-400 051. If there are no transactions during a particular period, a Nil return should be submitted.

2. Do not leave any column blank. Furnish complete particulars against each item. Where any particular item is not applicable write “N.A.” against it.

3. All dates should be in format YYYY/MM/DD, such as 2004/01/21 for January 21, 2004.

4. Borrowers obtaining sub-loans through DFIs/Banks/NBFCs etc. should not complete this form as the concerned financial institution would directly submit ECB-2.

5. Before forwarding the return to Reserve Bank (DESACS), the Company Secretary/Chartered Accountant must properly scrutinise all the related original documents and ensure that the return is complete in all respects and strictly in order as per ECB Guidelines issued by Government/RBI.

6. The unique Loan Identification Number (LIN)/RBI Registration Number (in case of loan approved prior to February 01, 2004) must be specified as allotted by RBI. Similarly, the Loan Registration Number (since February 01, 2004) has to be specified.

7. If space is not sufficient for giving full information against any item, a separate sheet may be attached to the return and serially numbered as Annex.

8. For purpose of utilization of drawdowns, following codes may be used.

BOX 1: Purpose of Utilisation Code
No.	Code	Description
1	IC	Import of Capital goods
2	IN	Import of non-capital goods
3	AG	Acquisition of Goods
4	SL	Onward lending or sub-lending
5	RL	Local sourcing of Capital Goods (Rupee expenditure)
6	RC	Working Capital (Rupee Expenditure)
7	RP	Repayment of earlier loan
8	IP	Interest Payments
9	PS	Payments for services
10	HA	Amount held abroad in Foreign Currency Account
11	OT	Others

9. For source of funds for remittances, following codes are to be used

BOX 2 : Source of Funds for remittance
No.	Code	Description
1	A	Remittance from India
2	B	Account held abroad
3	C	Exports proceeds held abroad
4	D	Conversion of equity capital
5	E	Others (Specify)

Part A

Loan Identification Particulars

Loan Registration Number (LRN)
Loan Amount			Borrower Particulars
	Currency	Amount	Name and address of the Borrower (Block Letters)
As per
Agreement
Revised			Contact Person’s Name:
			Designation:
			Phone No. :
			Fax No. :
			E-mail ID :

Part B

Actual Transaction Details

1. Drawdown during the month :

Tranche	Date	Currency	Amount	Amount of loan committed but not yet
No.	(YYYY/MM/DD)			drawn at the end of the month (in loan
				currency)
	(Please see note			Currency	Amount
	below)

Note: 1. In the case of import of goods or services, date of import may be furnished against date of drawdown.

2. In the case of financial lease date of acquisition of the goods is to be mentioned as date of drawdown.

3. In the case of securitised instruments, date of issue may be shown as date of drawdown.

2. Schedule of balance amount of loan to be drawn in future :

Tranche No.	Expected Date	Currency	Amount	If more than one equal instalment
	(YYYY/MM/DD)			Total number	No. of
	of drawdown			of drawals	drawals in a
					calendar year

3. Details of utilisation of drawdowns during the month:

Tranche	Date	Purpose	Country	Currency	Amount	Fresh
No.	(YYYY/MM/DD)	codes				Disbursement/
		(See BOX 1)				From A/c held
						abroad

4. Amount parked abroad outstanding as on beginning of the month—

Date	Name of bank and	Account No.	Currency	Amount
(YYYY/MM/DD)	branch

5. Utilisation of amount parked abroad :

Name of Bank and branch	Amount	Expected date of utilization

6. Debt Servicing during the month—

Tranche	Purpose	Date of	Currency	Amount	Source of	Prepayment
No.		Remittance			remittance	of Principal
					(See Box 2)	(Y/N)
	Principal
	Interest @ rate
	Others (Specify)

7. Derivative transactions (Interest rate, Currency swap) during the month (if any) -

Type of Swap	Swap Dealer		Counter party		Implementation Date
	Name	Country	Name	Country
Interest Rate swap
Currency swap
Others (specify)

Tranche	New Currency	Interest Rate on the	New Interest Rate	Maturity Date
No.		New Currency	on the Loan Currency	of the swap deal

8. Revised Principal Repayment Schedule (if revised/entered into Interest rate swap)

Date (YYYY/MM/DD)	Currency	Amount in	If more than one equal		Annuity
(First repayment date)		Foreign	instalments		Rate
		Currency in	Total	No. of
		each	Number of	payments	(if annuity
		transactions	instalments	in a calendar	Payment)
				year
				(1, 2, 3, 4, 6, 12)

9. Amount of outstanding loan at the end of the month :

Currency

Amount:

(For RBI Use)

We hereby certify that the particulars given above are true and correct to the best of our knowledge and belief. No material information has been withheld and/or misrepresented.

Place : .....................	Stamp	..........................................................................
Date : .....................
		(Signature of Authorised Official)
		Name : ...........................................................
		Designation : ...............................................
		(For Borrower’s use)

Certificate from Company Secretary/Chartered Accountant

We hereby certify that the foreign currency loan/credit available in terms of approval granted by Government/RBI/automatic route is duly accounted in the books of account. Further, the loan has been utilised by the borrower for the purpose of ............................................................... We have verified all the related documents and record connected with the utilisation of loan/credit and found these to be in order and in accordance with the terms and conditions of the loan agreement and with the approval granted by GoI(MoF)/RBI/Automatic Route and is in conformity with the ECB Guidelines issued by the Government.

Authorised Signatory

Name & Address

Place : Registration No.

Date : [Seal]

Certificate by an Authorised Dealer

We hereby certify that the information furnished above with regard to debt servicing, outstandings and repayment schedule is true and correct as per our record.

		..........................................................................
		[Seal] Signature of Authorised Dealer
Place : ...................		Name :.............................................................
Date : ...................		Designation : ...............................................
		Name & Address of
		Authorised Dealer
		Uniform Code No. ...................................
		[Seal]............................ ...................................

FOR RBI (DESACS) Use only Loan_key

CS-DRMS Team

Received on

Action Taken on

Loan Classification