RBI cautious over foreign borrowing

The Reserve Bank of India sounded a note of caution over unlimited access to short-term external commercial borrowings by businesses to fund working capital and other domestic requirements.


The central bank has reasoned that many of the financial crises in the 1990s were created by excessive short-term debt.

"In respect of short-term ECBs, there is already a strong international consensus that emerging markets should keep such borrowings relatively small in relation to their

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