On November 27, 2018, central bank of India, Reserve Bank of India (RBI) in consultation with the government of India, reduced the mandatory hedging provision to 70 per cent from 100 per cent. Its objective is to ease the External Commercial Borrowing (ECB) norms. This move would enable Indian companies to borrow foreign currency-denominated ECBs for better liquidity as they don’t have to have a 100% hedge coverage. However, the ECBs thus raised should be ECBs under Track I, which refers to medium-term borrowings with average maturity between three and five years.