(i) Borrowers in India are required to submit to Reserve Bank quarterly statements in form ECB 2, in duplicate, about drawal and utilisation of the loan amount. The statements should also contain details of all the repayments/payments made under the loan/credit during the quarter under report [cf. paragraph 7B7(ii)] and submitted to Reserve Bank duly certified by an authorised dealer by the 10th day of the month following the quarter to which they relate. The statements in form ECB 2 should continue to be submitted to Reserve Bank until such time the loan/credit is fully repaid and in case of financial lease the period of lease is over. In case there are no drawals/repayments during a particular quarter a `NIL statement should be submitted. In the event of default in timely submission of the statement in form ECB 2, the borrowers shall be liable for such action as may be deemed necessary by Reserve Bank under FERA 1973. The borrowers are also required to submit to Reserve Bank a supplementary statement by way of an annexure to ECB 2 in the prescribed form giving details of utilisation of the loan/credit duly certified by the statutory auditors/chartered accountants and supported by a complete set of documents such as Exchange Control copy/ies of the import licence/s (where applicable), original invoices and Exchange Control copy/ies of bill/s of entry for home consumption evidencing import into India of goods for which the loan/credit in question was obtained. This supplementary statement should be submitted by the borrowers till the loan/credit is fully utilised and the supporting documents are submitted to Reserve Bank.

(ii) On receipt of the statements in form ECB 2, Reserve Bank will issue an acknowledgement for receipt of the statement. It should be noted that no remittances towards repayment of the loan/credit would be allowed by authorised dealers/Reserve Bank until the statement in form ECB 2 has been submitted to Reserve Bank for the last quarter and an acknowledgement obtained therefor from Reserve Bank.