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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“Full prepared..going to win,” Congress MP KC Venugopal ahead of Kerala polls
EC not functioning as a neutral institution: Venugopal
Congress MP K. C. Venugopal on Monday raised concerns over the election schedule announced by the Election Commission of India for the upcoming Kerala Assembly election, questioning the timing of the poll dates and alleging that the schedule leaves limited time for campaigning.
Speaking to news agency ANI in Delhi after the poll panel announced elections in five states and Union Territories, Venugopal said that the Congress and the United Democratic Front (UDF) are fully prepared for the elections and confident of victory. At the same time, he questioned the pattern of dates announced by the Election Commission.
“We are fully prepared, we are going to win the elections... You can see how the Election Commission has set the dates. The first phase of elections is on the 9th, nominations are due until the 23rd, scrutiny is on the 24th, nominations can be withdrawn until the 26th, and after that, there are 11 days for campaigning,” he said.
“As for Kerala, there is Easter and Good Friday in the first week...The Election Commission could have announced the dates earlier... The counting date is on May 4th, so what was the point of holding elections in Kerala so early? What is their intention behind holding elections on the same day in Kerala, Puducherry, and Assam?... We are confident that we will win, but the people of the country are seeing the biased attitude of the Election Commission...,” he added.
He further stated that his party was ready for elections irrespective of the dates announced by the poll body.
“We are going to win the election. India's strategy has been set up. And we are all ready for winning this election. But one thing as far as declaring election, even though they are giving only for five days, we are going to win the election. We have no problem,” he said.
Detailing the poll schedule while questioning the time available for campaigning, he stated, “but you can see the pattern of date which the election commission announced. Yesterday they declared election, and today they notified us. The first phase of election on April 9th, filing of nomination will be over on the 23rd of this month, 24th scrutiny, 26th withdrawal of nomination. After 26, four plus seven, 11 days campaign.”
“As far as Kerala is concerned, April first week is a holy week. The holiday week means, Good Friday is there. Nobody will do anything on Good Friday. Easter is the big festival. These festivals are natural, you have to see that. Among the 11 days, working days, two, three days will go for holidays. Then hardly seven, eight days for campaigning in this election for candidates,” the Congress MP questioned.
The Congress leader said the Election Commission could have announced the dates earlier if there was a need for an early election schedule.
Questioning the urgency behind placing Kerala in the first phase of polling, he added that the counting date is much later.
“Which is the date of counting? Fourth May. Then what is the urgency of putting Kerala in the first phase without giving sufficient time for candidates? And putting Kerala, Puducherry, Assam together, what is the intention behind that?” Venugopal questioned.
He also alleged that the Election Commission was not functioning as a neutral institution.
“The Election commission is completely losing that capacity as a neutral player. You can see 14 of our prime minister's programs over and on the 15th they announce the election, 16th notification comes,” he said.
Venugopal further stated that such tactics would not affect the Congress’ prospects in the election.
“They think that this type of techniques and tactics, because of these techniques and tactics, UDF is going to lose, and Congress is going to lose. This is their complete dream only. This is not going to happen. We are very much confident at any cost, whether they are not giving any time also, we are going to win the election,” he said.
“But the people of India are watching this. The tricks of the election commission. To restrict the campaign, people of India are watching. This I want to bring into the notice of the nation. That's all,” Venugopal said.
The Election Commission of India on Sunday announced the schedule for the Kerala Assembly election. Polling in the state will be held in a single phase on April 9 while the counting of votes is scheduled to take place on May 4.
