RBI Eases Hedging Norms For ECBs To 70% From Current 100%

i. The Reserve Bank has relaxed norms for External Commercial Borrowings (ECBs) by reducing the mandatory hedging provision to 70% from the current 100%. The relaxed norms will apply to the ECBs with a maturity period between 3 and 5 years.
ii. On a further review of the extant provisions, it has been decided, in consultation with the government of India, to reduce the mandatory hedge coverage from 100% to 70% for ECBs raised under Track-I of the ECB framework.