RBI allows Start-ups to raise fund through ECBs

Reserve Bank of India has allowed start-ups recognised by the government to borrow up to $3 million per financial year for a three-year tenure through External Commercial Borrowings (ECBs).

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.