RBI's new rules on overseas borrowing: What it means
RBI just rolled out new rules for how Indian companies can borrow money from abroad, making it easier for more businesses to access foreign funds.
The changes boost borrowing limits, relax some requirements, and clarify what the money can (and can't) be used for.
What's changed?
Now, eligible borrowers can borrow up to $1 billion or 300% of their net worth—up from the old $750 million cap.
A minimum average maturity period of three years applies, but manufacturers get a bit more flexibility with smaller loans.
The RBI also tightened rules on where borrowed money can go: certain real-estate activities and specified agricultural uses are restricted, while rupee proceeds must be placed in an INR account within one month and surplus may be held in unencumbered fixed deposits for up to a year, and foreign-currency funds for permitted expenditures can be retained in domestic or overseas foreign-currency accounts or invested in short-term debt instruments for up to one year.
Why this matters
This move comes after Indian companies raised a record $61 billion through the ECB route in FY25—a big deal if you're interested in startups, corporate growth, or India's economy overall.
Plus, with clearer rules and simpler reporting for investors and companies alike, it could mean more opportunities (and maybe even jobs) down the line.