A new foreign commercial debt policy

It is a sincere effort to simplify the governing regulation. But an explanation about the economic rationale underlying the restrictions is overdue

Bhargavi Zaveri & Radhika Pandey

On January 16, 2019, the Reserve Bank of India (RBI) issued a circular re-hauling the regulatory framework governing the raising of foreign credit by Indian firms.  This is the 13th time in a span of three years that the framework has been revised. The revised framework simplifies the hitherto complex regulatory maze that governed the terms on which Indian firms could access credit from foreign lenders. It expands the range of lenders that may lend to Indian firms, the range of Indian firms that may borrow from offshore lenders and the purposes for which such borrowing may be ...