The Reserve Bank has eased norms for companies in manufacturing sector to raise overseas funds and allowed Indian banks to market Masala Bonds in line with the government`s measures to prop up the rupee. Following a review of the economy by Prime Minister Narendra Modi last week, the government announced an array of measures to check the decline of rupee and curb the widening current account deficit (CAD). Liberalisation of the External Commercial Borrowing (ECB) norms was among other measures announced by the government. It has been decided, in consultation with the government, to liberalise some aspects of the ECB policy including policy on rupee denominated bonds (Masala Bonds). As per the revised policy, eligible ECB borrowers who are into manufacturing sector, will be allowed to raise ECB up to $ 50 million or its equivalent with minimum average maturity period of 1 year. The earlier average minimum maturity period was three years. The central bank has also made changes in norms wherein Indian banks can market Masala Bonds overseas.Presently, Indian banks can act only as arranger/ underwriter for such bonds and in case of underwriting an issue, their holding cannot be more than 5 per cent of the issue size after 6 months of issue.