Thursday, October 4, 2018

Rupee fall : RBI tweaks ECB norms for OMCs

Image result for external commercial borrowings

 Reserve Bank has allowed Forex borrowings for working capital by oil marketing companies under the automatic route with immediate effect.

The central bank has also waived off the USD 750 million cap that individual state-run refiners had earlier and has capped the overall annual foreign currency borrowing under the new norms at USD 10 billion with immediate effect.

All the state-run oil marketing companies will now be able to raise external commercial borrowings for working capital purposes with a minimum average maturity of three to five years from all recognized lenders under the automatic route. 

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