India's central bank allowed Indian companies to invest more funds overseas without its prior permission,in a bid to ease the pressure of forex inflows Tuesday, according to a Press Trust of India (PTI) report Wednesday.
The Reserve Bank of India (RBI) raised the aggregate ceiling of overseas investment by mutual funds from four billion U.S. dollars to five billion U.S dollars.
Besides, it doubled the overseas investment limit by individuals to 200,000 U.S. dollars per fiscal.
The banking regulator also raised the limit for companies to prepay their external loans as part of moves to flush out excess foreign capital and check the rise in rupee value against other currencies.
Companies in India can now prepay up to 500 million U.S. dollars of their external commercial borrowings without RBI approval as against the earlier limit of 400 million U.S. dollars.
The changes in the outbound investment norms are aimed at accelerating the implementation of the third phase of the recommendations of a committee on fuller capital account convertibility, PTI quoted the central bank as saying in a statement.
Source: Xinhua
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