ECB Compliance.
External commercial borrowings let Indian entities raise loans from overseas lenders under FEMA. The framework was overhauled in February 2026, when RBI amended the Foreign Exchange Management (Borrowing and Lending) Regulations and withdrew the ECB sections of its earlier Master Direction. We check eligibility and terms, obtain the Loan Registration Number and keep reporting current until the loan is repaid.
Typically 2–3 weeks to obtain the LRN once the loan agreement is final, depending on the AD bank's review. Approval-route cases take longer because RBI examines them.
A partner — a chartered accountant or company secretary — from the first call to sign-off.
Based on your situation, and fixed in writing before any work starts.
Is this for you?
- Companies, and since 2026 LLPs and other non-individual resident entities, borrowing from foreign lenders
- Indian subsidiaries taking loans from their overseas parent or group companies
- Businesses refinancing an existing ECB or converting it into equity
What you receive at the end.
- 01Eligibility and compliance note under the 2026 framework
- 02ECB form filed and LRN obtained
- 03ECB 2 returns for each drawdown and repayment
- 04Withholding tax checklist for interest paid to the lender
ECB Compliance, step by step.
Typically 2–3 weeks to obtain the LRN once the loan agreement is final, depending on the AD bank's review. Approval-route cases take longer because RBI examines them.
- 1
Eligibility and terms
We check borrower and lender eligibility, permitted end-uses, minimum average maturity, borrowing limits and whether the automatic or approval route applies.
- 2
Agreement review
We review the loan agreement against the regulations so that the pricing, maturity and end-use clauses comply.
- 3
LRN through AD bank
We file the ECB form with your AD Category-I bank, which forwards it to RBI to allot a Loan Registration Number (LRN). No drawdown can take place before the LRN is issued.
- 4
ECB 2 reporting
We file ECB 2 returns through the AD bank when proceeds are drawn or debt is serviced, within the prescribed days after the month in which it happens.
- 5
Changes and closure
We report changes in terms, conversion to equity and cancellation, and regularise any reporting delay through a late submission fee.
What we need from you.
Don't have everything yet? We send a short checklist after the first call and work with what you have.
- Loan agreement or term sheet with the foreign lender
- Board resolution approving the borrowing
- Lender's details and its relationship with the borrower
- End-use plan and drawdown schedule
- Latest audited balance sheet, for limit and net-worth calculations
- Drawdown, interest and repayment records
The fee depends on your situation. After a short call, the partner who will do the work tells you what's involved and gives you a fixed fee in writing — before any work begins.
- Government fees and statutory charges are billed at actuals.
- When you pay — upfront, in stages or on completion — is agreed in writing with the fee.
Questions about ECB Compliance.
Ready to discuss ECB Compliance?
30-minute confidential call — no proposal, no commitment. A partner will write back within one business day.