Boon for foreign lenders as RBI bans banks from US$ loans

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Boon for foreign lenders as RBI bans banks from US$ loans

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The Reserve Bank of India has banned overseas branches and subsidiaries of Indian banks from providing US dollar funds to companies if the end use of the proceeds is to repay rupee loans. While the move is a victory for international lenders who will now have the upper hand in obtaining new business, it has also led to predictions of a decline in loan volumes from the country, writes Rashmi Kumar.

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