IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 10 Sep 2013 | Removal date: open ended
Still in force

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.
 
 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

Please report this page in case you detect an inaccuracy in its content.