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In which of the following ways ECBs (External commercial borrowing) can be carried out in India?
  • a)
    Automatic Route
  • b)
    Semi-Automatic Route
  • c)
    Approval Route
  • d)
    Both (a) and (c)
  • e)
    All of the above
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
In which of the following ways ECBs (External commercial borrowing) ca...
ECB refers to the loans taken from non-resident lenders i.e. the foreign companies to finance commercial activities in India. ECBs cannot be used for investment in stock market or speculation in real estate. At some times, borrowings from external companies can be cheaper than that borrowed within the country. There are two ways in which ECB can be accessed in the country: Automatic Route, under which, the borrower is not to take any permission from RBI or Govt. and Approval Route under which, the borrower has to take approval from RBI or GOI.
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In which of the following ways ECBs (External commercial borrowing) can be carried out in India?a)Automatic Routeb)Semi-Automatic Routec)Approval Routed)Both (a) and (c)e)All of the aboveCorrect answer is option 'D'. Can you explain this answer?
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