MUMBAI (Reuters) - The Reserve Bank of India (RBI) said on Tuesday it could penalise lenders that help domestic companies raise debt abroad if that fundraising violates external commercial borrowing rules when repatriated to India.
The RBI said some overseas units of Indian companies were selling debt abroad at rates that exceeded the ceiling set by it under foreign exchange rules and then routing the proceeds back to India.
The central bank has directed lenders helping arrange these deals to make sure debt sales conform to its rules.
(Reporting by Suvashree Dey Choudhury; Editing by Biju Dwarakanath)
