External Commercial Borrowings (ECB) are loans raised by Indian Companies from Foreign Banks or Foreign Body Corporates by Indian Companies, these loans are mainly raised in foreign Currency. Loans Raised by Indian Companies from Foreign Body Corporates or Banks are governed under ECB Framework of Reserve Bank of India and Required Returns are required to be submitted to AD-Bank in India, AD Bank Thereafter send the returns to DSIM
As per the ECB guidelines of the Reserve Bank of India, ECB Returns are required to submit to AD Bank within 7 days of the close of the Monthly.
![How to Submit ECB Return in India 1 ECB RETURN](https://fastlegal.in/blog/wp-content/uploads/2021/07/ECB-REturn-1024x576.png)
Time Limit for Submission of ECB-2 Return
Within 7 Days of the close of the Month, say ECB-2 return for the Month of June 21 should be Submitted by 7th of July 21
Late Submission of ECB-2 Return
Entities that have not filed the ECB Return to AD Bank may also submit ECB Return after the due date with payment of the Late Submission Fee(LSF)
Late Submission Fee For ECB-2 Return
Sr. No. | Type of Return | Period of Delay | Applicable Late Submission Fee |
1. | Form ECB 2 | Up to 30 calendar days from the due date of submission | INR 5,000 |
2. | Form ECB 2 | Up to three years from the due date of submission | INR 50,000 per year |
3. | Form ECB 2 | Beyond three years from the due date of submission | INR 100,000 per year |
What is ECB-2 Form
ECB-2 is prescribed form under ECB guidelines under which ECB Return is required to be submitted to RBI
How to Submit ECB Return
ECB Return is required to be submitted Physically to AD Bank Branch designated by AD Bank , you can ask your AD Bank the branch where you need to submit the return and submit accordingly and also you can email the soft copy of return within due date to desigmated officer of AD bank.