Current Affairs - Banking - Discussion

The Reserve Bank of India (RBI) has allowed state-owned oil companies to borrow long-term working capital from overseas. RBI relaxed the policy on borrowing up to 10 billion US dollar from the overseas by the state-owned fuel retailers. Till now oil marketing companies including Indian Oil Corp, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd, were not allowed to raise External Commercial Borrowing (ECB) for working capital needs on a long-term basis. Now, the RBI has allowed them to raise ECB of minimum maturity of 3 or 5 years.