RBI eases overseas borrowing norms for dollar-hungry OMCs

Vartha Bharati | 03-10-2018 | 22:22:00 IST

Mumbai, Oct 3 : The Reserve Bank India (RBI) on Wednesday relaxed overseas borrowing norms for state-run Oil Marketing Companies (OMCs) as rupee continues to slide to new lows for more than a month now.

The RBI relaxed the norm that requires raising External Commercial Borrowings (ECBs) for working capital purposes from direct and indirect equity holders or from a group company with a minimum average maturity of five years.

Public sector OMCs, which require huge amount of foreign currency to import crude oil, can now raise ECBs for working capital purposes with a minimum average maturity of three to five years from all lenders under the automatic route.

"It has been decided, in consultation with the government of India, to liberalise the said provision and permit public sector OMCs to raise ECB for working capital purposes with minimum average maturity period of 3/5 years from all recognized lenders under the automatic route," the RBI said in a notification.

Further, the individual limit of $750 million or equivalent and mandatory hedging requirements as per the ECB framework have also been waived and the overall ceiling for such ECBs has been kept at $10 billion equivalent, with immediate effect.

While the OMCs have been encouraged to raise some of their dollar requirements from abroad, the central bank has asked the OMCs to have a Board-approved forex mark to market procedure and prudent risk management policy for such ECBs.

The notification comes on a day when rupee touched a fresh low and closed at its all-time low of Rs 73.34 per US dollar after Brent crude oil price went over $84 a barrel.

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SC notice to Centre, others on plea concerning MSP

13-04-2026 ¦ 13-04-2026 IST

Supreme Court of India (PTI)

New Delhi (PTI): The Supreme Court on Monday sought responses from the Centre and others on a plea to accord weightage to states' proposal on the exact cost of cultivation while fixing minimum support price (MSP).

A bench of Chief Justice Surya Kant and Justice Joymalya Bagchi issued notices to the Centre and others, including the Commission for Agricultural Costs and Prices, seeking their response on the plea.

Advocate Prashant Bhushan, appearing for the petitioners, said the plea raises a very important issue related to the farmers in the country.

The plea has sought direction to the authorities to ensure complete procurement of all notified crops under the MSP calculated on the basis of the exact cost of cultivation.

It has also sought direction to take appropriate steps to ensure complete procurement of crops from all farmers who are desirous of selling their crops at the MSP.