The Reserve Bank of India (RBI) has introduced a special US Dollar-Rupee forex swap facility for eligible External Commercial Borrowings (ECBs) and Overseas Foreign Currency Borrowings (OFCBs). The scheme applies to qualifying PSU ECBs with a minimum three-year maturity and bank OFCBs. Under the facility, eligible entities can swap dollar inflows with RBI at a fixed rate of 1.5% per annum, reducing hedging costs and encouraging foreign currency funding. The initiative aims to support overseas borrowing, improve liquidity and strengthen foreign capital inflows.
Please click here to read the full article by Nand Gopal Anand, Partner, Harshit Dusad, Partner, and Vrindesh Patel, Associate, published in Mondaq.
Nand is a Partner in the Gurugram office of the firm. He specialises in Banking & Finance, with specific focus on general lending, external commercial borrowings, overseas direct investments, project finance, trade finance, shipping finance and real estate finance related transactions.