RBI Turns down Easing Of FDI, ECB Norms For Core Sector Funding

New Delhi: The Reserve Bank of India has turned down proposals to relax external commercial borrowing (ECB) and foreign direct investment (FDI) norms for infrastructure financing companies as well as to enhance foreign institutional investment in debt papers. Classification of a separate non-banking finance company (NBFC) category and relaxing norms for ECB and FDI may not be desirable as it creates opportunities for regulatory arbitrage, the Reserve Bank of India (RBI) said in its comment to the finance ministry on the proposal.