RBI eases infra overseas borrowing rules

The Reserve Bank of India on Tuesday eased oversees borrowing rules for Infrastructure Finance Companies (IFC).

The IFC's will not need the central bank's nod to raise overseas funds equivalent to or less than half of their own funds, the Reserve Bank of India (RBI) said in a statement.

IFCs who wish to borrow more than 50 percent of their own funds through external commercial borrowings (ECB) would have to seek the RBI's approval under the approval route, the central bank said.

RBI rejects banks' proposal for borrower-specific base rates

These special category of IFC's was created by the government to give a push to the key infrastructure sector. The statement also said other aspects of the ECB policy would remain unchanged.

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