New Delhi: The Reserve Bank of India has allowed bidders of insolvent companies to raise extra commercial borrowings abroad and use those proceeds to repay the rupee loans of the targeted insolvent companies they are keen on acquiring. The RBI decided to ease the existing limitation on end-use of ECB proceeds after realizing that many bidders may find it cheaper to borrow abroad to acquire such distressed assets. Companies keen to raise ECBs will need the approval of the central bank. The RBI will allow companies to raise these foreign funds from all eligible lenders except from overseas branches and subsidiaries of Indian banks. RBI Monetary Policy: Read all the latest updates

Source: Mint February 07, 2019 07:37 UTC