The Reserve Bank of India (“RBI”) in Circular No. 29 dated 7th June, 2018 has intimated the Authorized Dealers Category – I Banks (AD) regarding modification of Form ECB – 2. Going forward, from the month ending June 2018, the entities having External Commercial Borrowing/s will be required to file monthly report on actual external commercial borrowing transactions through the ADs using the revised format of Form ECB-2.
Background
As per Regulation 2.12.3 of the Master Direction – External Commercial Borrowings, Trade Credit, Borrowing and Lending in Foreign Currency by Authorised Dealers and Persons other than Authorised Dealers, the borrowers are required to report actual ECB transactions through Form ECB 2 through the AD Category I bank on monthly basis.
RBI has further clarified that any lapse at the time of filing the return or failure to adhere to the time line of its submission shall be considered to be contravention of the provisions of Foreign Exchange Management Act, 1999.
The revised ECB-2 form is attached for reference.
For further details, please refer to the hyperlink.
Source: Reserve Bank of India
A small doubt- pending full utilization whether ECB part proceeds can be credited t working capital cash credit account instead of term deposit ( permitted up to 12 months), as the interest receipt on term deposits is lower than cash credit interest.
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We are taken ECB Loan and we are intital stage of manufacturing unit and now we spending money on fixed asset and as well as working capital and all other expenses further our requirements is how to prepare a ECB report and expenses belongs belongs to fixed asset and working capital we should prepare monthly or we should after commercial production (completion of project)
Kindly duggest
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