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Apr 23, 2014
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RBI puts curb on using ECB to repay domestic loans
The Reserve Bank of India (RBI) has barred companies from repaying domestic loans through funds raised through external commercial borrowings (ECBs) from foreign branches of Indian banks.RBI told banks to put restrictions on their foreign branches in terms of giving guarantees to offshore joint ventures/subsidiaries of Indian companies to avail of foreign currency loans to repay rupee credit.
Source -
http://www.business-standard.com
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