The Reserve Bank of India (RBI) said on Monday it has relaxed overseas borrowing limits for infrastructure finance companies, a move that will enable companies in the investment-hungry sector to raise funds more easily.
The RBI said infrastructure finance companies will no longer need to seek approval for raising funds overseas equivalent to up to 75% of their owned funds. The limit had been 50%.
India's infrastructure companies raise a large chunk of their borrowings from overseas because of attractive rates.
The RBI also relaxed the hedging requirement for currency risk for these companies to 75% of the exposure, from an earlier limit of 100%.
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