MANU/APDR/0057/2016
Ministry : Reserve Bank of India
Department/Board : RBI A.P. DIR (Series)
Circular No. : A. P. (DIR Series) Circular No. 13
RBI/2016-2017/103
Date : 27.10.2016
Notification/ Circulars Referred : A.P. (DIR Series) Circular No. 32 dated November 30, 2015 MANU/APDR/0091/2015
Citing Reference:
A.P. (DIR Series) Circular No. 32 dated November 30, 2015 MANU/APDR/0091/2015 Referred
To
All Category-I Authorised Dealer Banks
Madam / Dear Sir
External Commercial Borrowings (ECB) by Startups
Attention of Authorized Dealer Category-I (AD Category-I) banks is invited to the announcement made by the Reserve Bank in the
Fourth Bi-monthly Monetary Policy Statement for the year 2016-17 released on October 04, 2016, for permitting Startup enterprises to access loans under ECB framework.
2. Parameters for considering an entity as a Startup have since been published in the Official Gazette on February 18, 2016 by the Government of India. It is therefore decided, in consultation with the Government of India to permit AD Category-I banks to allow Startups to raise ECB under the following framework:
a. Eligibility: An entity recognised as a Startup by the Central Government as on date of raising ECB.
b. Maturity: Minimum average maturity period will be 3 years.
c. Recognised lender: Lender / investor shall be a resident of a country who is either a member of Financial Action Task Force (FATF) or a member of a FATF-Style Regional Bodies; and shall not be from a country identified in the public statement of the FATF as: