ANNOUNCED AS TEMPORARYNo
Controls on credit operations
On 10 Septemeber 2013, the Reserve Bank of India (RBI) issued a circular liberalising limits on foreign currency borrowings of Authorised Dealer Category - I (AD Category-I) banks from their Head Office, overseas branches and correspondents and overdrafts in Nostro accounts. The earlier limit of maximum 50 per cent of the unimpaired Tier I capital as at the close of the previous quarter or USD 10 million (or its equivalent), whichever is higher has been raised to maximum 100 percent of the unimpaired Tier I capital or USD 10 million, whichever is higher.
AD Category - I banks are branches of banks authorised to deal in foreign exchange business, and that maintain independent foreign currency accounts.
On 25 September 2013, the RBI issued a notification clarifying that any foreign currency borrowing made on or before 30 November 2013 could have a minimum maturity of one year, whereas any borrowing after this date has to have a minimum maturity of three years.
Further on 10 October 2013, the RBI allowed AD Category-I banks to borrow from international/multilateral financial institutions and not just their Head Offices up to 30 November 2013.
⚑ Please report this page in case you detect an inaccuracy in its content.