In a significant move to bolster the investment landscape, the Reserve Bank of India has overhauled the External Commercial Borrowing (ECB) framework as of February 2026. This policy shift is designed to expand the capital pool for Indian corporations, potentially unlocking up to $100 billion in overseas funding for the 2026-27 period. The central bank has increased the individual borrowing limit to $1 billion or 300% of a company’s net worth, whichever is higher. This is a substantial rise from the previous annual cap of $750 million. The new regulations also simplify eligibility, allowing any non-individual entity incorporated under Central or State Acts to access global debt markets. Pricing restrictions have been largely dismantled. The RBI has removed the rigid all-in-cost ceiling, allowing interest rates on new borrowings to be determined by market conditions. For fixed-rate loans, the benchmark is now tied to the floating rate plus a corresponding swap spread. This change is expected to lower the cost of capital for high-rated issuers and provide better alignment with global credit cycles. End-use permissions have been dramatically expanded. For the first time, ECB proceeds can be utilized for land acquisition, township development, and commercial construction. Companies undergoing restructuring or insolvency resolution are also now eligible to raise funds via the ECB route, providing a critical lifeline for stressed assets. Maturity norms have been rationalized to support varying business cycles. While a minimum average maturity of 3 years remains the standard, manufacturing firms can now raise up to $150 million with shorter maturities of 1 to 3 years. This provides necessary flexibility for managing working capital and short-term operational needs. The broader macroeconomic environment supports this liberalization. India’s foreign exchange reserves stood at $717.6 billion as of early February 2026, providing a robust buffer against external volatility. With the domestic repo rate held at 5.25%, the removal of ECB cost caps allows Indian firms to arbitrage global liquidity more effectively. Operational compliance has been streamlined through the removal of the requirement for Authorised Dealer banks to maintain specific current accounts for ECB transactions. Reporting timelines have also been updated to reduce the administrative burden on corporate treasuries, making the process of raising offshore debt faster and more efficient for large-scale expansions and acquisitions.