## OFCB 1. The term is used for the overseas foriegn currency borrowings of: 1. [Authorised Dealers Category-I banks](Forex%20Markets.md#Authorised%20Dealers) and 2. Standalone Primary Dealers authorised as Authorised Dealer Category-III 2. [July 6, 2022](https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=53979) - [Liberalisation of Forex Flows](RBI_Press Release_20220706_Liberalisation of Forex Flows.pdf) 3. [July 07, 2022](https://rbi.org.in/Scripts/NotificationUser.aspx?Id=12356&Mode=0) - RBI allowed AD Cat-I banks can utilise the funds raised from overseas foreign currency borrowings between July 08, 2022 and October 31, 2022 (both dates included) in terms of paragraph Part-C(5)(a) of the [Master Direction - Risk Management and Inter-Bank Dealings dated July 05, 2016](https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=10485), as amended from time to time, for lending in foreign currency to constituents (their customers) in India. 4. [June 5, 2026](https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=62864) - In the statement for June 5 MPC meet, governor announced a facility of concessional forex swap till 30th September 2026 to incentivize ECBs by PSUs, OFCBs by AD Category I banks, FCNR(B) deposits 1. [June 8, 2026](https://rbi.org.in/scripts/NotificationUser.aspx?Mode=0&Id=13468) - Operational details for the "Swap Facility for FCNR (B) Deposits". 2. [June 8, 2026](https://rbi.org.in/scripts/NotificationUser.aspx?Id=13469&Mode=0) - Swap Facility for External Commercial Borrowings and Overseas Foreign Currency Borrowings’. 3. [June 23, 2026](https://rbi.org.in/Scripts/FAQDisplay.aspx?Id=178) - FAQs on Swap Facility for FCNR (B) deposits, External Commercial Borrowings and Overseas Foreign Currency Borrowings ## Break-up/Form on OFCB submitted to RBI 1. **Unimpaired Tier-I capital:** The bank's core capital base (its own net worth cushion), reported as of last quarter. This is used as a reference limit, as borrowings are capped as a % of this. 1. Related Note - [Basel III Pillars](Basel%20III%20Pillars.md) - **Column 1 is Borrowings in terms of Part C Para 5(a)**: The "normal"/routine foreign currency borrowing banks are allowed to raise, as permitted under a specific rule (Part C Para 5a) of the Master Direction. We can understand it just like a "standard quota." - **Column 2 is Borrowings in excess of the above limit for replenishment**: Extra emergency borrowing allowed _beyond_ the normal quota, specifically to replenish/refill rupee funds. But this facility was **withdrawn in 2004**. Hence, this column is always 0. - **Column 3 is External Commercial Borrowings (ECBs)**: Any [ECB (Borrowings in INR and FCY)](ECB%20(Borrowings%20in%20INR%20and%20FCY).md) funds the bank itself has borrowed (separate concept, but reported here too). - **Column 4a/4b is Export credit related schemes**: Specific foreign currency borrowings taken _only_ to fund export-credit lending, that is, pre-shipment credit (PCFC) or post-shipment credit in foreign currency (**BAF** (Bankers Acceptance Facility) and **EBR** (Rediscounting of Export Bills Abroad Scheme) for exporters. - **Column 5 is Subordinated debt in foreign currency**: They are subordinated below depositors and senior credit in terms of repayment priority in the event of liquidation. They are allowed to be counted toward the bank's Tier-II capital. - **Column 6 is Any other category**: "Catch-for-all" group for anything not fitting above. - **Column 7 & 8 is Totals**: Simple addition of the relevant columns (Col 7 is without export-credit lines, and Col 8 includes them). - **Column 9 & 10 are Ratios**: Those totals expressed as a % of the bank's Tier-I capital (column A). This shows how much a bank has borrowed in terms of foreign currency relative to its own capital base. RBI monitors these ratios for prudential limits. ## Regulations 1. [FEM (Borrowing and Lending) Regulations, 2018, dated December 17, 2018]((https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11441) and, 2. [Master Direction - Risk Management and Inter-Bank Dealings dated July 05, 2016](https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=10485), as amended from time to time. 3.  [Master Direction – Standalone Primary Dealers (Reserve Bank) Directions, 2016 dated August 23, 2016](https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=10567) ## Related Notes 1. [ECB (Borrowings in INR and FCY)](ECB%20(Borrowings%20in%20INR%20and%20FCY).md) 2. [Exports & The RBI](Exports%20&%20The%20RBI.md) 3. [Capital Flows - Account & Management](Capital%20Flows%20-%20Account%20&%20Management.md) 4. [FCNR (B) Swap Facility - June 8, 2026](FCNR%20(B)%20Swap%20Facility%20-%20June%208,%202026.md)