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.

Source:rediff.com

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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