RBI allows lenders to borrow from global multilateral bodies

Source : REUTERS
Last Updated: Fri, Oct 11, 2013 03:53 hrs
Kashmiri shopkeeper staples together Indian currency notes in Srinagar

Mumbai: ​The Reserve Bank of India on Thursday allowed banks to raise funds from global multilateral institutions until November 30 as long as the money raised is for general banking purposes and not for capital enhancement.

These borrowings from multilateral bodies will also be eligible for the recently opened forex swap facility.

The RBI set up a swap window for banks last month, offering to exchange foreign currency for rupees at below market rates for lenders that raise funds abroad. The action was a bid to prop up the rupee by attracting more capital into the country.

The central bank on Thursday also allowed banks to borrow from entities other than their own branches overseas under existing regulators for borrowing overseas.

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