RBI to ease external commercial borrowing rules
The Reserve Bank of India (RBI) is about to loosen its external commercial borrowing (ECB) rules, making it simpler for Indian businesses to tap into overseas funds.
This update follows a review of older regulations and aims to give more companies access to global money—without as much red tape.
Who can borrow and lend now
The new framework expands who can borrow and who can lend, ups borrowing limits, and removes some restrictions on loan terms and costs.
Now, groups like Port Trusts, SIDBI, EXIM Bank, microfinance outfits raising rupee loans—and basically any entity allowed foreign direct investment—can join in.
Reporting requirements are also getting a refresh.
Non-bank lenders have stepped in
Non-bank lenders have already pumped ₹2.66 lakh crore into the commercial sector this year (2025-26), helping fill the gap left by shrinking bank credit.
Even though fewer ECB deals were registered in June 2025 compared to last year, the total money raised actually went up—from $2.8 billion to $3.5 billion—showing that easier rules could mean even more funding options ahead.