Banks can borrow from global financial institutions without RBI nod

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RBI_900449fThe Reserve Bank of India (RBI) allowed banks to borrow from international financial institutions for general banking business without seeking its permission.

“To provide 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.

However, such borrowings should be only for the purpose of general banking business.