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: