To access foreign funds, there has been an introduction of flexibility in RBI norms. Banks can borrow from global financial institutions for the general banking business without seeking permission from RBI.
“With a view to providing greater flexibility in seeking access to overseas funds, it has now been decided to permit banks to borrow from international/multilateral financial institutions without approaching Reserve Bank for a case by case approval,” the RBI said.
The flexibility is only for those international/ multilateral financial institutions which are having the Indian Government as a shareholding member. Such institutions have been shareholding by more than one government and other international organizations. The norms have been eased only for those borrowings which are related to the general banking business.
On another notice, RBI has granted permission to all non-deposit taking NBFCs to act as sub-agents under Money Transfer Service Schemes (MTSS) without seeking confirmation from it. “Deposit accepting non-banking financial companies (NBFCs) are, however, not permitted to undertake such activity”, RBI added.
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