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RBI raises ceiling on loans to JVs abroad
April 08, 2003 21:05 IST
Reserve Bank of India has permitted banks to offer credit or non-credit facilities to Indian joint ventures or wholly owned subsidiaries abroad up to 10 per cent of their unimpaired capital funds, both tier I and II.
As per the earlier norm, there was a ceiling of five per cent of the unimpaired tier I capital for offering such facilities subject to certain conditions, RBI said in a release in Mumbai on Tuesday.
This facility was permitted to banks to provide additional avenues for deployment of funds held in foreign currency non-resident (banks), exchange earners' foreign currency and resident foreign currency accounts.
The existing exchange control regulations also allow authorised dealers to undertake investments in overseas markets subject to limits approved by their respective boards.
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