Mumbai

The RBI on Wednesday eased norms for companies in the manufacturing sector to raise overseas funds and allowed Indian banks to market Masala Bonds in line with the government’s measures to prop up the rupee and curb the widening current account deficit.

Liberalisation of the External Commercial Borrowing (ECB) norms was among other measures announced by the government. “It has been decided, in consultation with the government, to liberalise some aspects of the ECB policy, including policy on rupee-denominated bonds,” the RBI said.

As per the revised policy, eligible ECB borrowers who are into the manufacturing sector will be allowed to raise ECB up to $50 million or its equivalent with the minimum average maturity period of 1 year.