Overseas borrowing limits for authorised dealer banks paused; revised cap and exceptions pending operationalisation and implementation. The Reserve Bank proposed increasing authorised dealer banks' overseas borrowing limit to 50% of unimpaired Tier I capital (or a fixed floor), with short term borrowing within that limit capped at 20% of unimpaired Tier I. Subordinated debt placed as Tier II capital, funds raised via innovative perpetual debt instruments, and Reserve Bank approved borrowings remain outside the 50% ceiling. Banks exceeding the revised limits may submit a compliance road map. Operationalisation of the proposal has been deferred due to market and liquidity considerations.
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Overseas borrowing limits for authorised dealer banks paused; revised cap and exceptions pending operationalisation and implementation.
The Reserve Bank proposed increasing authorised dealer banks' overseas borrowing limit to 50% of unimpaired Tier I capital (or a fixed floor), with short term borrowing within that limit capped at 20% of unimpaired Tier I. Subordinated debt placed as Tier II capital, funds raised via innovative perpetual debt instruments, and Reserve Bank approved borrowings remain outside the 50% ceiling. Banks exceeding the revised limits may submit a compliance road map. Operationalisation of the proposal has been deferred due to market and liquidity considerations.
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