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INDIA-ECONOMY-RBI

The Reserve Bank ofA?India (RBI)A?has eased the process for property developers to access foreign money in an effort to encourage low-cost housing projects, such as slum rehabilitation. The bank has extended the limit of $1 billion that can be borrowed through the external commercial borrowing (ECB) scheme to the 2014-2015 financial year.

The move will also allow companies to hedge the entire borrowing, protecting them from any sharp depreciation of the rupee against the dollar.

“The ECB availed of by developers and builders shall be swapped into rupees for the entire maturity on a fully hedged basis,” the RBI said in a notification on Monday.

The apex bank also reduced the minimum experience companies must have to undertake these projects from five years to three years. RBI also did away with the minimum paid-up capital of 500 million rupees for property developers.

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