Borrowed fund end-use restrictions bar prohibited activities while permitting limited strategic corporate actions and specified agricultural sector uses. Funds borrowed under the Borrowing and Lending framework cannot be used for specified restricted activities, including chit funds, nidhi companies, real ... Summary
Borrowed fund end-use restrictions bar prohibited activities while permitting limited strategic corporate actions and specified agricultural sector uses.
Funds borrowed under the Borrowing and Lending framework cannot be used for specified restricted activities, including chit funds, nidhi companies, real estate business, farmhouses, transferable development rights, prohibited securities transactions, and repayment of restricted-use or non-performing domestic INR loans. Construction-development projects require trunk infrastructure before plot sales, while industrial parks must meet unit, area-occupation and industrial-allocation conditions. Limited agricultural, animal-husbandry and plantation activities are permitted. Corporate-action securities transactions are allowed only for strategic long-term value creation, and prohibited end-uses cannot be funded through on-lending.
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