RBI relaxes borrowing norms for firms under investigation

Reserve bank of India (RBI) has said that the firms under investigation in India will no longer be required to obtain direct central bank permission before borrowing funds abroad.

RBI, via a notification, said than an external commercial borrowing for such corporates would from now on be allowed through what it called the automatic route, notwithstanding pending investigations, adjudications and appeals by law enforcement agencies. The automatic route requires only that a firm approach its own commercial bank about such a loan.

Meanwhile, RBI didn't give any reason for the change and no official from the central bank was contactable.

Read more about: rbi
Story first published: Wednesday, March 6, 2013, 9:30 [IST]
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