The Reserve Bank on Thursday further relaxedforeign borrowing norms for banks under the recently opened swap window by allowing them to raise funds through their head offices and correspondents besides overseas branches.
Until now, the window was limited to overseas branches of banks only. Authorised dealer category-I banks may borrow funds in foreign currency from their head office, overseas branches and correspondents or any other entity as permitted by the Reserve Bank and avail of the this window to raise up to 100 per cent of their unimpaired tier I capital or $10 million whichever is higher, the RBI said in a notification, amending the regulations issued on September 26.
The central bank said the move is aimed at providing greater flexibility to banks in accessing overseas funds.
So far, according to dealers, the banks have raised more than USD 1 billion through this window, including USD 255 million raised by Yes Bank.