External Commercial Borrowing is raising funds in currency other than rupee i.e. in foreign currency probably in dollars. The External Commercial Borrowings policy is monitored and updated by RBI on a regular basis, according to the macroeconomic conditions and foreign exchange liquidity situation.
External Commercial Borrowings include
The guiding principles for External Commercial Borrowing Policy are to keep maturities long, costs low, and encourage infrastructure and export sector financing which are crucial for overall growth of the economy.