The RBI has recently issued a
notification considering the specific needs of the micro finance sector,
allowing the MFIs to raise ECB up to USD 10 million or equivalent during a
financial year for permitted end-uses, under the Automatic Route.
This notification issued by the RBI
in December 2011 can be seen as a welcome change for the Micro Financing
institutions and the NGOs engaged in such activities.
Read further to know about the guidelines issued
on external commercial borrowing by MFIs by Reserve Bank of India. You can see
the notification here.