RBI says overseas borrowed funds can be parked with banks

The Reserve  Bank of India on Friday allowed external commercial borrowings to be parked with banks in the country as term deposits for up to six months pending their utilisation.

The borrowers are required to bring the proceeds meant for rupee expenditure such as payment for spectrum allocation, capital goods into India.

The existing external commercial borrowing guidelines on the cost ceiling, permitted end-use and others will also be applicable to all such debt where the proceeds will be parked with banks in the country, the Reserve Bank of India said.

(Reuters)