STARTUP LEGAL30 Sept 2026
Indian PSUs to keep tapping dollar debt despite higher costs, says HSBC's Venkatesh | Company Business News
Indian state-owned companies will likely keep borrowing dollars overseas even though it costs more, HSBC says, to spread their funding sources. The Reserve Bank of India opened cheap windows to pull dollars in; the foreign currency non-resident deposit window closed on 31 August, while external commercial borrowing windows run till 31 December. Compare total dollar cost with rupee funding before you borrow.
Key Statutory Highlights
- Indian PSUs may keep borrowing overseas in dollars even though it is costlier, mainly to diversify their funding sources, HSBC India said.
- The RBI opened subsidised windows for overseas debt, and the FCNR deposit window closed on 31 August, while external commercial borrowing and overseas foreign currency borrowing windows stay open till 31 December.
- These windows brought in $143.6 billion till 18 September, and 93% of that came through FCNR deposits, as per RBI data.
Actionable Advice for Taxpayers / Founders:If you are planning an overseas loan, work out the full landed cost, including hedging and any withholding tax, and compare it with domestic funding before you commit.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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