MUMBAI, Dec 1 (Reuters) - The Reserve Bank of India said on
Thursday it will cap banks' exposure to a single entity to 20
percent of a lender's capital base and to 25 percent limit to a
group of connected entities, according to a circular on
Currently the RBI allows a bank to lend up to 15 percent of
its capital funds to a single borrower and 40 percent to a
The central bank also said that banks must classify the sum
of all exposures of 10 percent or above as "large exposure" and
report them to the RBI.
The rules will be effective April 1, 2019.
For the full circular, see: http://bit.ly/2gp45gU
(Reporting by Suvashree Dey Choudhury; Editing by Gopakumar