The Reserve Bank of India released draft rules proposing to make it easier for companies to raise funds in foreign currencies on Friday

The central bank has proposed widening the pool of borrowers and lenders eligible for external commercial borrowings and easing restrictions on their use.

Borrowing limit rules

In the draft rules, the Reserve Bank proposes linking overseas borrowing limits to a company’s financial strength, allowing firms to raise up to $1 billion or as much as 300 per cent of net worth.

The RBI stated that external commercial borrowings can be raised at market-determined interest rates.

The draft proposed simplifying the end-use restrictions and Minimum Average Maturity requirements. The draft stated that the borrower and lender base eligible for ECB transactions i

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