| Date: |
25-06-2015
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| Notification No: |
RBI/2014-15/649 A.P. (DIR Series) Circular No. 112
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| Issuing Authority: |
RBI
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| Type: |
A.P.D.(Series) Circulars
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| File No: |
RBI/2014-15/649 |
| Subject: |
Overseas Foreign Currency Borrowings by Authorised Dealer Bank
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RBI/2014-15/649
A.P. (DIR Series) Circular No. 112
June 25, 2015
To
All Category - I Authorised Dealer Banks
Madam / Sir,
Overseas Foreign Currency Borrowings by Authorised Dealer Bank
Attention of Authorised Dealer Category I (AD Category-I) banks is invited to
Regulation no. (4)(2)(i) of
Notification No. FEMA 3/RB-2000 dated May 3, 2000,
as amended from time to time, in terms of which, AD Category - I banks may
borrow funds from their Head Office or overseas branches or correspondents
outside India or any other entity as permitted by Reserve Bank, up to a limit of
hundred per cent of their unimpaired Tier I capital as at the close of the
previous quarter or USD 10 million (or its equivalent), whichever is higher,
subject to such conditions as the Reserve Bank may direct. Attention is also
drawn to
A.P. (DIR Series) Circular No. 61 dated October 10, 2013, in terms of
which permission was granted to AD Cat-I banks to borrow from international /
multilateral financial institutions for a limited period up to November 30,
2013.
- With a view to providing greater flexibility in seeking access to overseas
funds, it has now been decided to permit AD Category - I banks to borrow from
international / multilateral financial institutions without approaching Reserve
Bank for a case by case approval. These shall include International /
Multilateral Financial Institutions of which Government of India is a
shareholding member or which have been established by more than one government
or have shareholding by more than one government and other international
organizations.
- Such borrowings should be for the purpose of general banking business and not
for capital augmentation and shall be subject to the applicable prudential
conditions stipulated in the
A.P. (DIR Series) Circular no. 40, 2013 dated
September 10, 2013.
- The directions contained in this circular have been issued under Sections
10(4) and 11(1) of the Foreign Exchange Management Act, 1999 (42 of 1999) and
are without prejudice to permissions/ approvals, if any, required under any
other law.
Yours faithfully
(R Subramanian)
Chief General Manager
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