BANKS PULLED UP ON ECB NORMS
It has been informed by the RBI that Regulatory Ceiling on interest rate on funds borrowed from
overseas in the form of External Commercial Borrowings (ECBs) has been breached as the Interest
rate charged has exceeded by more than 200 basis points above London Inter Bank Offering Rate
(LIBOR). Even Loan Registration number has not been issued for syndicating loans overseas. RBI has contemplated penal action against banks for all the said ECB violations.
overseas in the form of External Commercial Borrowings (ECBs) has been breached as the Interest
rate charged has exceeded by more than 200 basis points above London Inter Bank Offering Rate
(LIBOR). Even Loan Registration number has not been issued for syndicating loans overseas. RBI has contemplated penal action against banks for all the said ECB violations.
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