Reserve Bank of India issued this circular with reference to A.P. (DIR Series) Circular No. 16 dated September 30, 2022 and Part V and XIII of the Master Direction – Reporting under Foreign Exchange Management Act, 1999, in relation to returns pertaining to External Commercial Borrowing (ECB).

The circular introduces changes relating to reporting of returns for External Commercial Borrowing (ECB). Form ECB 1 and Revised Form ECB 1 are specified as returns which do not capture flows, and late submission fee is to be computed accordingly. Each delayed submission of Form ECB 2 under a Loan Registration Number is treated as a separate instance for computation of the fixed component of late submission fee. The designated Authorised Dealer Category I bank is required to submit returns received from eligible borrowers, complete in all aspects and with due certification, to the Reserve Bank within seven calendar days from the date of receipt. Late submission fee, wherever applicable, is payable at the concerned Regional Office of the Reserve Bank through NEFT or RTGS after receipt of acknowledgement email. The designated Authorised Dealer Category I bank is required to monitor payment of applicable late submission fee by customers or constituents in cases of delayed submission. The provisions apply to Authorised Dealer Category I banks and eligible borrowers involved in ECB transactions.

“2. On a review, the following changes are being made to the extant directions with reference to the returns pertaining to External Commercial Borrowing (ECB):

(i) Form ECB 1 and Revised Form ECB 1 (known as Form ECB and Revised Form ECB respectively prior to notification of Foreign Exchange Management (Borrowing and Lending) (First Amendment) Regulations, 2026) shall be treated as returns which do not capture flows.

Late Submission Fee for delayed submission of these forms shall be computed accordingly;

(ii) LSF amount is per return. Therefore, each delayed submission of Form ECB 2 return submitted under a Loan Registration Number (LRN) shall be treated as a separate instance for computation of the fixed component of LSF;

(iii) The designated AD Category I bank shall submit the return (complete in all aspects) received from the eligible borrower, along with due certification, to the Reserve Bank within seven calendar days from the date of its receipt;

(iv) The LSF, wherever applicable, shall be payable at the Regional Office concerned of the Reserve Bank by way of NEFT or RTGS, post receipt of an e-mail from the Reserve Bank acknowledging receipt of the return. Detailed instructions in this regard will be contained in the said acknowledgment e-mail; and

(v) In case of delayed submission of returns, the designated AD Category I bank shall monitor payment of applicable LSF by their customers/ constituents.”