RBI proposes new rules for foreign currency loans
The Reserve Bank of India (RBI) just dropped draft rules that could let Indian companies borrow up to $1 billion—or 300% of their net worth—in foreign currency, all at market-driven rates.
The idea is to tie borrowing limits more closely to a company's financial health and open up the pool of who can borrow and lend.
If you have thoughts, RBI is taking feedback until October 24.
What does this mean for companies?
The RBI is also looking to relax some restrictions on how these loans can be used and cut down on paperwork.
This could mean more flexibility for companies needing funds from abroad, plus a wider range of businesses and lenders getting involved.
RBI's bigger plans for banking overhaul
Earlier this week, RBI announced it will roll out new global banking standards (Basel III) and credit loss rules by April 2027.
It's also planning updates around credit risk and how banks work with their group companies—all part of making India's financial system stronger and more modern.