The Reserve Bank of India issued updated directions to Authorised Dealer (AD) Category I banks on reporting requirements for External Commercial Borrowing (ECB) returns under the Foreign Exchange Management Act, 1999, including changes to how late submission fees are calculated and administered. The revised requirements take effect from April 1, 2026. Form ECB 1 and Revised Form ECB 1 will be treated as returns that do not capture flows, and the Late Submission Fee (LSF) for delayed filing will be computed accordingly. For Form ECB 2, the LSF is specified as being per return, meaning each delayed submission under a Loan Registration Number will be treated as a separate instance for the fixed component of the LSF. Designated AD Category I banks must submit ECB returns received from eligible borrowers, complete and duly certified, to the Reserve Bank within seven calendar days of receipt, monitor customer payment of any applicable LSF for delayed submissions, and ensure LSF is paid to the relevant Reserve Bank regional office via NEFT or RTGS after receiving an acknowledgement email confirming receipt of the return.
Reserve Bank of India 2026-03-30
Reserve Bank of India revises ECB return reporting including late submission fee calculation and seven-day submission timeline
The Reserve Bank of India has updated directions to Authorised Dealer Category I banks on reporting requirements for External Commercial Borrowing returns under the Foreign Exchange Management Act, 1999, including revised Late Submission Fees (LSF). Form ECB 1 and Revised Form ECB 1 will be treated as non-flow returns for LSF, while for Form ECB 2 the LSF will apply per return under each Loan Registration Number, with designated banks responsible for timely submission and remittance to the relevant Reserve Bank regional office.