External Commercial Borrowings (ECB)

Tax Glossary Definition

External Commercial Borrowings (ECB)

External Commercial Borrowing (ECB) refers to a loan or credit raised by an Indian company or entity from foreign sources. ECBs are typically used for capital expenditure, business expansion, or infrastructure projects and are governed by regulations of the Reserve Bank of India (RBI).

Example: An Indian company borrows funds from a foreign bank to finance its business expansion

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