RBI lowers limit on foreign investment in commercial paper

MUMBAI (Reuters) - The Reserve Bank of India on Friday lowered the limit on investments in up to one-year debt known as commercial papers by foreign investors to encourage long-term investments in the country's corporate debt market.

Foreign investors will be allowed to invest up to $2 billion in commercial paper, compared with $3.5 billion earlier, the Reserve Bank of India said. The overall limit for foreign investors in corporate debt stays at $51 billion.

(Reporting by Aradhana Aravindan)