MUMBAI (Reuters) - The Reserve Bank of India (RBI) said on Friday it will extend by one month the concessional forex swap window through which banks can raise capital overseas if such loans have been approved by Nov 30.
Under the programme due to expire at the end of this month, Indian banks can borrow overseas up to 100 percent of their Tier 1 capital level using a concessional swap rate offered by the RBI at 100 basis points below the market rate.
The concessional swap rate was implemented in September to bolster the central bank's FX reserves, giving it greater firepower to defend a sharp decline in the exchange rate. (Reporting by Himank Sharma; Editing by Tony Munroe)