Page 1 - Digi Page - General Awareness - Dec, 2015
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General Awareness
Financial Term of the Week
External Commercial Borrowing (ECB)
Any Funds/Capital borrowed from foreign sources like financial
institutions or Banks for financing commercial activities within India is
termed as External Commercial Borrowing
According to RBI guidelines the following credit or loans come under the
definition of ECB -
A. Commercial Bank Loans B. Buyer’s credit and Supplier’s credit
C. Floating Rate Notes D. Multilateral Financial Institutions
ECB is any kind of fund other than Equity as the funding in equity is called
Foreign Direct Investment
‘’Bonds’’, ’’Asset Backed Securities’’, ‘’Mortgage Backed securities’’ can be a
part of ECB.
ECB to primarily fund the infrastructure and SME sector of the economy.
Digi Note - Read: RBI relaxes ECB norms(29 November-5 December)
th
th
Recently Airtel was lend funds under ECB by Industrial commercial Bank,
China
Date of Release - 11-Dec-15 www.mahendras.org www.bankersguru.org
General Awareness
Financial Term of the Week
External Commercial Borrowing (ECB)
Any Funds/Capital borrowed from foreign sources like financial
institutions or Banks for financing commercial activities within India is
termed as External Commercial Borrowing
According to RBI guidelines the following credit or loans come under the
definition of ECB -
A. Commercial Bank Loans B. Buyer’s credit and Supplier’s credit
C. Floating Rate Notes D. Multilateral Financial Institutions
ECB is any kind of fund other than Equity as the funding in equity is called
Foreign Direct Investment
‘’Bonds’’, ’’Asset Backed Securities’’, ‘’Mortgage Backed securities’’ can be a
part of ECB.
ECB to primarily fund the infrastructure and SME sector of the economy.
Digi Note - Read: RBI relaxes ECB norms(29 November-5 December)
th
th
Recently Airtel was lend funds under ECB by Industrial commercial Bank,
China
Date of Release - 11-Dec-15 www.mahendras.org www.bankersguru.org
