conversion of payable to ECB, FEMA

[Umesh M V]

Is it possible to convert payables to ECB.IF so what is the procedure for the same.

Posts / Replies

[CA Rachit Agarwal]

You have to make the application to the bank for the sanction of proposal for ECB or conversion of existing Term Loan to ECB.

After the sanction, if the amount is within the limit, then the sanction will be under the Automatic Route. If the same is beyond the limit then approval will be required from RBI.

Further interest rates of ECB will be dependent on the maturity of ECB and Repayments.

ECB can be availed for Working Capital Limits (Buyers Credit/Suppliers Credit) or for Capital Expenditure in respect of Projects.

For further details you can mail me at carachitagarwal@sify.com