The Reserve Bank of India (RBI) on Tuesday clarified that Indian banks, including their overseas branches, can extend loans to non-residents and issue standby letters of credit (SBLCs) against FCNR(B) deposits mobilised under its recently announced swap facility.
In a set of frequently asked questions (FAQs) on swap facilities for FCNR(B) deposits, external commercial borrowings (ECBs) and overseas foreign currency borrowings (OFCBs), the central bank also said banks are permitted to extend loans to FCNR(B) account holders and mark a lien on such deposits.
