Parking of Proceeds :

(i) Parking of ECB proceeds abroad: ECB proceeds meant only for foreign currency expenditure can be parked abroad pending utilization . Till utilisation, these funds can be invested in the following liquid assets:

(a) deposits or Certificate of Deposit or other products offered by banks rated not less than AA (-) by Standard and Poor/ Fitch IBCA or Aa3 by Moody’s;

(b) Treasury bills and other monetary instruments of one year maturity having minimum rating as indicated above; and

(c) deposits with overseas branches/ subsidiaries of Indian banks abroad.

(ii) Parking of ECB proceeds domestically: ECB proceeds meant for Rupee expenditure should be repatriated immediately for credit to their Rupee accounts with AD Category I banks in India. ECB borrowers are also allowed to park ECB proceeds in term deposits with AD Category I banks in India for a maximum period of 12 months. These term deposits should be kept in unencumbered position.