RBI loosens rules for offshore refi but bars Indian banks

By Shruti Chaturvedi
04 Sep 2014

The Reserve Bank of India has revised its offshore borrowing rules, making it easier for companies to refinance loans overseas. But at the same time it has placed restrictions on Indian bank participation. The fallout is already being felt, with one Indian lender having to step away from the loan for Reliance Jio, and some bankers expect the loss of liquidity offered by Indian banks to push up pricing, writes Shruti Chaturvedi.

Companies wanting to refinance an offshore loan where the average maturity of the new loan exceeds the residual maturity of the existing one no longer need to go through the RBI approval process, according to an announcement from the central bank on August 27.

The move ...

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