The Reserve Bank of India (RBI) on March 30, 2026, issued the Reporting under Foreign Exchange Management Act, 1999 – Returns pertaining to External Commercial Borrowing (ECB).
The following has been stated namely: -
• ECB Forms Classification: Form ECB 1 and Revised Form ECB 1 are now treated as non-flow returns, and Late Submission Fee (LSF) will be calculated accordingly.
• LSF Calculation per Return: Each delayed Form ECB 2 submission under a Loan Registration Number (LRN) is treated as a separate case for calculating the fixed component of LSF.
• Submission Timeline: Authorised Dealer (AD) Category I banks must submit complete ECB returns to the RBI within 7 calendar days of receiving them from borrowers.
• LSF Payment Process: Applicable LSF must be paid to the RBI Regional Office via NEFT/RTGS, after receiving an acknowledgment email with payment instructions.
• Bank Responsibility: AD Category I banks are responsible for monitoring and ensuring LSF payment by their customers in case of delays.
This shall come into force on April 01, 2026.
[Notification No. RBI/2025-26/253]
