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In Wednesday's "[I] RBI Policy: Proposes external commercial borrowing norms issued under FEMA" story, the header and the first paragraph should read the Reserve Bank of India has proposed to review the regulations governing external commercial borrowings. It was incorrectly mentioned that the RBI had proposed to introduce these regulations. 

A corrected version follows: 

[I] RBI Policy: Propose to review external commercial borrowing norms

Informist, Wednesday, Oct. 1, 2025

MUMBAI – The Reserve Bank of India has proposed to review regulations governing external commercial borrowings under the Foreign Exchange Management Regulations, 2018, Governor Sanjay Malhotra said while detailing the outcome of the Monetary Policy Committee's meeting Wednesday. "With an objective to rationalise and simplify the regulations governing external commercial borrowings, the Reserve Bank of India has undertaken a review of the existing provisions," Malhotra said. A draft framework on the matter will be issued soon.

Upon review, the proposed framework includes changes such as expansion of the eligible borrower and recognised lender base, rationalisation of borrowing limits, rationalisation of restrictions on average maturity period, and removal of restrictions on the cost of borrowing for external commercial borrowings. Additionally, end-use restrictions will be reviewed and reporting requirements will be simplified, the RBI said. 

In a unanimous decision Wednesday, the rate-setting panel left the policy repo rate unchanged at 5.50%. It also retained its 'neutral' policy stance. Malhotra noted that the decision was a fallout of the inflation outlook turning out to be more benign than previously projected.  End

Reported by Vaishali Tyagi

Edited by Akul Nishant Akhoury

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