RBI proposes allowing banks to provide partial credit enhancement for infra loans

MUMBAI (Reuters) - The Reserve Bank of India on Tuesday released a draft circular allowing banks to provide partial credit enhancement to corporate bonds issued for funding infrastructure projects by companies.

The central bank said banks can provide partial credit enhancement by a maximum of two notches or twenty percent of entire bond issue and has asked banks to send their feedback on the draft guidelines by June 30.

(Reporting by Nandita Bose Editing by Jeremy Gaunt)