RBI announces limit for the stock of External Commercial Borrowings at 6.5% of GDP

ECB limit works out to US$ 160 billion based on GDP figure, against outstanding ECB stock of US$ 126.29 billion

The Reserve Bank of India has decided, in consultation with the Government of India, to have a rule-based dynamic limit for outstanding stock of External Commercial Borrowings (ECB) at 6.5% of GDP at current market prices.

Based on the GDP figures as on 31 March 2018, the soft limit works out to US$ 160 billion for the current financial year.

The outstanding stock of ECB as on 30 September 2018 stood at US$ 126.29 billion.

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