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<h1>RBI Amends Rules to Allow On-Lending of Borrowed Funds to Infrastructure Sector Under FEMA 1999</h1> The Reserve Bank of India issued amendments to the Foreign Exchange Management (Borrowing and Lending in Rupees) Regulations, 2000, effective from the date of publication in the Official Gazette. The amendments, under the Foreign Exchange Management Act, 1999, allow resident entities or companies to use borrowed funds for on-lending or re-lending to the infrastructure sector or to place them in fixed deposits with Indian banks until they are used for permissible purposes. These changes are outlined in the Foreign Exchange Management (Borrowing and Lending in Rupees) (Amendment) Regulations, 2013.
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