Liberalisation of Forex Flows

To further diversify & expand the sources of forex funding so as to mitigate volatility & dampen global spillovers, RBI has decided to undertake some time bound measures to enhance forex inflows as follows:

1] Banks will be exempted from CRR & SLR on incremental FCNR(B) and NRE Term Deposits
2] Banks temporarily permitted to raise fresh FCNR(B) and NRE deposits without reference to the extant regulations on interest rates

FPI Investment in Debt
1] New issuances of G-Secs will be under the FAR route
2] Relaxation of limits under MTF route

Foreign Currency Lending
AD Cat-I banks can utilise overseas foreign currency borrowing for lending in foreign currency subject to some conditions

External Commercial Borrowings
ECB limit to be temporarily increase to US$ 1.5 billion from US$ 750 million.  Also, all-in cost ceiling to be raised by 100 basis points (borrower rating: investment grade)

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