RBI relaxes ECB norms to prop up rupee
Mumbai, Sep 19: The Reserve Bank of India (RBI) on Thursday liberalised some aspects of the external commercial borrowings (ECBs) policy including those related to rupee-denominated bonds to help check rupee depreciation.
"It has been decided to allow eligible ECB borrowers who are into manufacturing sector to raise ECB up to $50 million or its equivalent with minimum average maturity period of 1 year," the RBI said in a notification.
Till date, ECB up to $50 million or its equivalent could be raised by eligible borrowers with minimum average maturity period of three years.
The decision to revise the minimum average maturity period of three years to one year was part of the five measures announced by the government last week after Prime Minister Narendra Modi held an economic review meeting.
Presently, Indian banks can act as arranger and underwriter for rupee denominated bonds (RDBs), also called masala bonds, issued overseas, and their holding cannot be more than five per cent of the issue size after six months of issue as an underwriter.
"It has now been decided to permit Indian banks to participate as arrangers/underwriters/market makers/traders in RDBs issued overseas subject to applicable prudential norms," the central bank said.
Last Monday, the government exempted tax on interest payable by Indian companies to non-residents, including foreign companies, on borrowings through off-shore rupee denominated bonds issued till March 31, 2019.
Till now, interest payable on such bonds issued before July 1, 2020 was liable for concessional rate of tax of five per cent
These steps, which are aimed at raising the foreign exchange inflow, are part of the multi-pronged strategy to curb current account deficit (CAD) and rupee depreciation.
Last Friday, after the Prime Minister held the economic review meet, Finance Minister Arun Jaitley announced the government's five measures and also a broad policy decision to curb non-essential imports and increase exports.
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Stalin claims DMK secured 1.54 crore votes
Chennai (PTI): DMK president M K Stalin on Tuesday, in a veiled reference to the TVK, claimed that the party that won additional constituencies has gained only 17.43 lakh more votes than the DMK.
He was referring to the April 23 Assembly polls where the DMK and its allies secured 74 seats, with the Dravidian party netting 59 constituencies.
In a statement, Stalin said, "the percentage difference in votes between us and them is just 3.52 per cent," in an apparent reference to the Vijay-led Tamilaga Vettri Kahzagam emerged victorious in the polls, the results of which were announced on Monday.
Claiming that the DMK alliance has secured 1.54 crore votes, Stalin said, "I consider each and every one of your votes as an invaluable token of trust".
Stating that DMK has been in power several times, he said "there is no victory we have not seen and there is no defeat we have not faced".
"Whether in victory or defeat, those who regard them equally and continue their journey toward their ideals are the comrades of the party", he said adding "you are the lifeblood and roots of the movement".
"The harvest of 1.54 crore votes is the fruit of your commitment", he said.
"What return can I offer for your hard work? With the feeling of being the chief worker, we will continue our journey," the DMK chief added.
Stalin said "if we are the ruling party, we will formulate schemes for the people. If we are the opposition party, we will fight for the people's demands. In that regard, now as a strong opposition party, we will continue to work for the people".
Asserting that the DMK will continue the journey of taking forward the policies of the century-old great Dravidian movement, protecting race, language, and nation, the DMK leader said "in our journey, I will not leave anyone behind. We will win again".
