The Reserve Bank of India on Thursday extended the deadline for aviation sector to raise funds through external commercial borrowings (ECBs) route by a year till March, a move aimed at providing relief to the cash-crunched sector.
“In a review, it has been decided that Scheme of raising ECB for working capital for Civil Aviation Sector will continue till March 31, 2016,” the central bank said through a notification. As per the earlier guidelines, the scheme was valid till March 2015.
The overall ECB ceiling for the entire civil aviation sector would be $1 billion and the maximum permissible ECB that can be availed by an individual airline company will be $300 million, it said. This limit can be utilised for working capital and also refinancing of the outstanding working capital rupee loan availed from the domestic banking system.
In another notification, the RBI said the scheme of raising ECB for low-cost affordable housing projects will continue for the financial year 2015-16.
Developers and builders having a minimum of three years experience in undertaking residential projects with a good track record in terms of quality and delivery can avail ECB. Housing Finance Companies and National Housing Bank (NHB) can also avail ECB for financing prospective owners of low cost affordable housing units.
RBI allows NRIs to invest in chit funds
The RBI allowed non-resident Indians (NRIs) to invest in chit funds on non-repatriation basis without any ceiling, a move that will encourage flow of capital into the country. However, the subscription to the chit funds should be brought in through normal banking channel, including through an account maintained with a bank in India. Earlier in May 2000, non-residents were barred from investing in a company or firms engaged in the business of chit fund. Revising the extant guidelines for subscription to the chit funds, RBI said: “It has been decided to permit NRIs to subscribe to the chit funds, without limit, on non-repatriation.” It further said the Registrar of Chits or an officer authorised by the State Government may permit any chit fund to accept subscription from RIs on non-repatriation basis.