Mumbai: The Reserve Bank of India (RBI) on Friday allowed banks more power to restructure external commercial borrowings (ECBs) of companies.

Banks were already allowed to deal with cases related to change in draw-down and repayment schedules of ECBs. On Friday, RBI allowed banks to modify the draw-down and repayment schedules of the ECBs, including change in the average maturity period and changes in the all-in-cost.

The changes are effected during the tenure of the ECB.

Banks are now allowed to change the ECB loan from one company to another in case of reorganization or merger.

For these measures, earlier companies had to approach the RBI. With banks now having the power to make these changes, companies will find it easy to restructure and transfer their ECB loans.

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