A. P. (DIR Series) Circular No. 29
All Category I Authorised Dealer
Madam / Dear Sir
External Commercial Borrowings
(ECBs) – Monthly reporting through ECB 2 Return
Attention of Authorized Dealer
Category I (AD Category I) banks is invited to Annex III of Part V of Master Direction No.18/2015-16 dated January 01, 2016 on
Reporting under Foreign Exchange Management Act, 1999, as amended from time
to time. The said Master Direction, inter alia, stipulates the reporting
arrangement for ECBs through ECB-2 Return.
2. It has been decided to
capture the details of the hedges for ECBs through a simplified format of
ECB 2 Return. Part E of the Return, accordingly, is modified so as to
include only standard information on hedged/unhedged ECB exposure (Annex). Details of hedging in Part E.1 of the
Return and foreign exchange earnings and expenditure in Part E.2 of the
Return should be furnished in additive format. Further, for reporting in
respect of natural hedge, provisions contained in paragraph 2 (iii)
of A.P. (DIR Series) Circular No. 15 dated
November 07, 2016 should be followed.
3. Revised monthly reporting
format of ECB 2 Return would be applicable from month-end June 2018. It is
reiterated that any lapse at the time of reporting through this return and
/ or failure to adhere to the time line of its submission and / or any
lapse at the time of reporting through Form 83 is a contravention of the
provision of Foreign Exchange Management Act, 1999 (42 of 1999).
4. AD Category - I banks may
bring the contents of this circular to the notice of their constituents and
customers. The aforesaid Master Direction No.
18 dated January 01, 2016 is being updated to reflect the
5. The directions contained in
this circular have been issued under sections 10(4) and 11(2) of the
Foreign Exchange Management Act, 1999 (42 of 1999) and are without
prejudice to permissions / approvals, if any, required under any other law.
Chief General Manager