What ECB is, briefly

External Commercial Borrowing refers to loans raised by Indian entities from foreign lenders — a common funding route for businesses needing foreign currency financing, subject to specific RBI regulations on eligible borrowers, lenders, end-use, and reporting.

The reporting obligations that commonly get missed

Why the ongoing monthly reporting is the most commonly missed piece

The initial registration tends to get proper attention since it's a precondition to drawing down funds. The ongoing monthly Form ECB-2 filing, spread over the life of a multi-year loan, is much easier to lose track of — especially if the finance team handling it changes over the loan's tenure.

A practical safeguard

Build ECB reporting into your standing monthly compliance calendar for the full tenure of the loan, not just at drawdown — and assign clear ownership so the obligation survives staff or role changes on your finance team over what can be a multi-year facility.

This article provides general guidance for educational purposes and reflects our understanding of the law as of the publication date. It is not a substitute for professional advice tailored to your specific facts. Tax and regulatory provisions change, and thresholds/deadlines should always be verified at the time of action. Please speak with our team before relying on this for a specific decision.
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CR
CA Rajesh Bhagat
International Tax Partner · VRKSJP & Co

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