Regulation: major shift as Reserve Bank of India relaxes rules on foreign borrowing
The Reserve Bank of India is taking a less proscriptive approach towards foreign borrowings by local entities
The Reserve Bank of India has liberalized the country’s external debt regime, lifting restrictions on end use of proceeds for foreign currency loans. The change in policy represents a major shift in stance for country, which is a net importer and has erred on the side of safety when it comes to foreign exchange risks.
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