RBI lending ceiling may increase loan prices
The Reserve Bank of India will introduce an ceiling on the amount banks can lend one corporate entity in India, but not the amount one company can borrow. The ceiling could make borrowing above a certain threshold more expensive.
On May 12, the Reserve Bank of India (RBI) said in a statement it would enact a ceiling for total bank lending to a single corporation, in an attempt to reduce the banking industry’s exposure to large Indian firms.
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