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The Reserve Bank of India (RBI) has granted permission to banks to borrow from international/multilateral financial institutions for a limited period of up to November 30, said RBI on Thursday.
RBI also said such borrowings should be for the purpose of general banking business and not for capital augmentation.
According to the central bank, such borrowings shall be eligible for the concessional swap facility of RBI.
Earlier, RBI had allowed banks to borrow from their head office of overseas branches or correspondents outside India up to hundred per cent of its unimpaired Tier-I capital or $10 million, whichever is higher.
