"External Commercial Borrowings (ECB) framework enables permitted resident entities to borrow from recognised non-resident entities." Comment.

External Commercial Borrowings (ECB) are commercial loans raised by eligible resident entities from recognised non-resident entities confirming to parameters with minimum maturity, permitted and non-permitted end-uses, minimum all-in-cost ceiling, etc. The parameters apply in totality and not on a standalone basis. Reserve Bank of India issued Foreign Exchange Management (Borrowing and Lending) Regulations, 2018 for borrowing and lending between a person resident in India and a person resident outside India. Minimum Average Maturity Period (MAMP) of ECB are 3/5/7/10 years. ECB framework permits resident entities to borrow from recognised non-resident entities in any form including bank loans, Securitised instruments, buyers' credit, suppliers' credit, Foreign Currency Convertible Bonds (FCCBs), Financial Leases and Foreign Currency Exchangeable Bonds (FCEBs).