What is the procedure of raising external commercial borrowings? Explain.

All External Commercial Borrowings (ECB) can be raised under the automatic route if they conform to the parameters prescribed under External Commercial Borrowings Framework. For approval route cases, the borrowers may approach the Reserve Bank of India with an application in prescribed format (Form ECB) for examination through their Authorised Dealer (AD) Category I bank. Such cases shall be considered keeping in view the overall guidelines, macroeconomic situation and merits of the specific proposals. ECB proposals received in the Reserve Bank above certain threshold limit (refixed from time to time) would be placed before the Empowered Committee set up by the Reserve Bank. The Empowered Committee will have external as well as internal members and the Reserve Bank will take a final decision in the cases taking into account recommendation of the Empowered Committee. Entities desirous to raise ECB under the automatic route may approach an AD Category I bank with their proposal along with duly filled in Form ECB.