In this latest update our team has summarised the significant amendments to the Reserve Bank of India’s External Commercial Borrowing framework.

On 16 February 2026, the RBI published the Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026, which represent a substantial liberalisation of the ECB regime in India. These changes are likely to be of considerable interest to banks and corporates involved in cross-border lending and investment into India.

The three key takeaways are:
Acquisition Financing: ECB proceeds may now be used for acquisition financing of M&A transactions involving the acquisition of control in both listed and unlisted targets.

Standardised MAMP: The minimum average maturity period for has been standardised at three years for all ECBs (with some exceptions for manufacturing companies for a shorter time frame).

Market-Linked Pricing: The all-in-cost ceiling has been removed, allowing parties to determine pricing based on commercial considerations and market conditions.

These amendments are expected to make ECB a more attractive financing route and increase offshore capital flows into India, particularly for acquisition financing by foreign owned and controlled companies.

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