WHAT IS FINANCIAL LITERACY & FINANCIAL FREEDOM ?
financial literacy, financial freedom, effects of financial illiteracy, invest your money for the long term, rule of 50/30/20, do we need to diversify our savings?Read More
ECB (External Commercial Borrowings) is a mechanism used in India to assist the access to foreign money by Indian corporations and PSUs (Public Sector Undertakings). ECBs include commercial bank loans, buyers' credit, suppliers' credit, securitized instruments such as Floating Rate Notes and Fixed Rate Bonds etc., credit from official export credit agencies and commercial borrowings from the private sector window of Multilateral Financial Institutions such as International Finance Corporation (Washington), ADB, AFIC, CDC, Euro-issues include Euro-convertible bonds and GDR etc. ECBs cannot be used for investment in stock market or speculation in real estate. For infrastructure and Greenfield projects, funding up to 50% (through ECB) is allowed. In telecom sector too, up to 50% funding through ECBs is allowed. External Commercial Borrowings (ECBs) include bank loans, suppliers' and buyers' credits, fixed and floating rate bonds (without convertibility) and borrowings from private sector windows of multilateral Financial Institutions such as International Finance Corporation.
The DEA (Department of Economic Affairs), Ministry of Finance, Government of India along with Reserve Bank of India, monitors and regulates ECB guidelines and policies. In India, External Commercial Borrowings are being permitted by the Government for providing an additional source of funds to Indian corporate and PSUs for financing expansion of existing capacity and as well as for fresh investment, to augment the resources available domestically. ECBs can be used for any purpose (rupee-related expenditure as well as imports) except for investment in stock market and speculation in real estate. The rupee interest rates have traditionally been much higher than rates prevailing in the international markets. Under these circumstances it makes sense to borrow in currencies other than the rupee, as it gives the advantage of lower interest rate.
The important aspect of ECB policy is to provide flexibility in borrowings by Indian corporate, at the same time maintaining prudent limits for total external borrowings. The guiding principles for ECB Policy are to keep maturities long, costs low, and encourage infrastructure and export sector financing which are crucial for overall growth of the economy. The ECB policy focuses on three aspects:
RBI guidelines now allow corporate to borrow the funds required for its capital expenditure in foreign currencies from international markets to take advantage of lower interest rates and of rise in the rupee.
We are successfully engaged in rendering services of External Commercial Borrowings. Many individuals and companies have made full use of this service to boost their business venture. We have two broad class of service in relation to External Commercial Borrowing.
The financial assistance provided through this service is available with full professional competency and that also at comparatively reduced interest rates. That is why our Commercial Borrowings services are the most sought after services we render in the market. And for these reason we have also revolutionized the sector of Commercial Borrowings in India.
Rajput Jain and Associates is the largest online service platform in India which provides easy solutions in starting their new business at affordable cost. We aim at helping the entrepreneurs at every legal and regulatory step. We stay as your partner during entire business cycle and ensure that the business keeps prospering and remains complaint.
Rajput Jain and Associates is a network of experienced chartered accountants, lawyers, company secretaries, cost accountants, financial experts, expert bankers all over India to provide the needed services for small and medium size enterprises.
Want to know more about Rajput Jain & Associates?
All the information related to any client is considered confidential and never be disclosed to anyone.
Having years of experience in respective areas and backed by skilled and experienced workforce keep us ahead.
We believe in the building the good relationship with the clients that ensures the great impression.
If you are not happy with our services then you can request a refund within 30 days.
We provide 24*7 supports through phone, email and live chat.
You can pay online through EMIs, PayPal, net banking, debit card, credit card and more.
Thank you very much for all your help in setting up my new company and clearing up all outstanding business in my sole trader accounts. For the first time in years I have peace of mind regards my business accounts. Your workforce are a credit to you, the girls at reception are so helpful and Chris has been brilliant. It is very much appreciated.
A US consultancy group
Rajput Jain & Associates. are a tremendous value added to me as an executive and a busy parent. It just makes sense to delegate my tax file to them -- they are proactive, extremely service oriented, and most importantly, I am completely confident they are finding every dollar of tax savings available to me.
A Leading Service Provider
We use Rajput Jain & Associates for all our accounting, Corporation tax, VAT and other compliance needs. The service is professional, courteous and prompt. I would recommend Rajput Jain & Associates to any company requiring a comprehensive accounting and tax service.
A Leading Consultancy Firm in Dubai