MUMBAI, Jan 7 (Reuters) - The Reserve Bank of India said on
Monday it has relaxed overseas borrowing limits for
infrastructure finance companies, a move that will enable
companies in the investment-hungry sector to raise funds more
The Indian central bank said infrastructure finance
companies will no longer need to seek approval for raising funds
overseas equivalent to up to 75 percent of their owned funds.
The limit had been 50 percent.
India's infrastructure companies raise a large chunk of
their borrowings from overseas because of attractive rates.
The RBI also relaxed the hedging requirement for currency
risk for these companies to 75 percent of the exposure, from an
earlier limit of 100 percent.
(Reporting by Neha Dasgupta; Editing by Catherine Evans)