ECB refer to borrowings by corporate & FIs from international market. ECBs are part of India? overall external debt. ECB is permitted for import of capital goods, implementation of new projects, modernisation of existing production units. Use of ECB for on lending or investment in capital market or acquiring a company including RE is not permitted. ECB more than USD 20 million per borrower per financial year is permitted for foreign currency expenditure & has to parked overseas for as & when use & not remit to India : for ECB upto USD 20 Million, Rupee expenditure is permitted only with prior approval of RBI ECB upto USD 20 Million or equivalent in a financial year is for maturity for 3 year, & above USD 20 Million, with minimum average maturity of 5 years. Micro finance NGUs can raise upto USD 5 mio in a year. A corporate can raise a maximum amount of USD 500 million or equivalent in a year, under automate route. Additional USD 250 million is permitted with approval from RBI with average maturity period of 10 years. Interest rate to 200 BPS & 350 over 6 months LIBOR for ECB of minimum average maturity period of 3-5 years & more than 5 years respectively.