Consider the following statements regarding External Commercial Borrowings (ECB):
1. They are commercial loans raised by eligible resident entities from recognized non-resident entities.
2. They can be raised under both automatic and approval routes.
Which of the statements given above is/are correct?
Answer and explanation
Correct answer: B. Both 1 and 2
- Step 1: Statement 1: ECBs are loans raised by Indian resident corporate entities from non-resident lenders according to RBI guidelines. Statement 1 is correct.
- Step 2: Statement 2: Eligible borrowers can raise ECBs under the automatic route (without prior RBI approval up to specified limits) or under the approval route for cases requiring regulatory scrutiny. Statement 2 is correct.
Answer
Both 1 and 2 are correct.
Practise more Indian Economy and Sustainable Development.
Free questions with an explanation for every one, and full timed UPSC CSE (Prelims) mock tests.
More Indian Economy and Sustainable Development questions
- With reference to the Indian economy, consider the following statements regarding Core Inflation:
1. It excludes volatile food and energy co… - Consider the following statements regarding Open Market Operations (OMOs) conducted by the Reserve Bank of India:
1. Outright purchase of go… - With reference to the Balance of Payments of India, which of the following are included in the Current Account?
1. Merchandise trade balance… - Consider the following statements regarding Sovereign Gold Bonds (SGB) issued by RBI:
1. They are denominated in multiples of gram(s) of gol… - What is the primary function of the Monetary Policy Committee (MPC) constituted under Section 45ZB of the Reserve Bank of India Act 1934?
- Consider the following statements regarding the Goods and Services Tax (GST) Council:
1. It is a constitutional body established under Artic…