ECB norms for start-ups eased

RBI with the view to boosting innovation and promoting job creation in the country eased external commercial borrowing(ECB) norms for start-ups.

 RBI allowed start-up companies recognized by the government to borrow up to $3 million in a financial year for three year tenure through ECB.The money raised can be used for any expenditure connected with the business of the company. “The borrowing can be in the form of loans or non-convertible, optionally convertible or partially convertible preference shares,” RBI said adding that it can be done in any convertible currency or in Indian rupees.