Authorised Dealer Category 1 banks now able to seek foreign funds

Q.  Which category banks have been allowed by the Reserve Bank of India (RBI) to borrow foreign currency from International/Multinational Financial Institutions (IFIs/MFIs)?
- Published on 21 Jun 15

a. Authorised Dealer Category I
b. Exclusive Dealer Category II
c. Retail Banker Category I
d. Individual Banker Category II

ANSWER: Authorised Dealer Category I
 
Earlier, AD Cat-I Banks were allowed to borrow from IFIs/MFIs for a short period in 2013 with prior permission from the RBI on a case-by-case basis. Now as per the recent notification, the banks can borrow without any such prior approvals from the RBI.

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