Restriction on use of rupee funds bars use outside borrower's business and for investments or relending, subject to RBI exceptions. Regulation 6 restricts use of rupee borrowings from non-residents to the borrower's own business, excluding chit funds, Nidhi companies, agricultural/plantation activities, real estate business or TDR trading, and bars use for investment in any entity or for relending; RBI may permit on-lending to the infrastructure sector or placement in bank fixed deposits pending permissible utilisation, and real estate business is clarified not to include township development or construction of residential/commercial premises, roads or bridges.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Restriction on use of rupee funds bars use outside borrower's business and for investments or relending, subject to RBI exceptions.
Regulation 6 restricts use of rupee borrowings from non-residents to the borrower's own business, excluding chit funds, Nidhi companies, agricultural/plantation activities, real estate business or TDR trading, and bars use for investment in any entity or for relending; RBI may permit on-lending to the infrastructure sector or placement in bank fixed deposits pending permissible utilisation, and real estate business is clarified not to include township development or construction of residential/commercial premises, roads or bridges.
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