RBI gives banks more power on customers' overseas loans

The Reserve Bank of India has given more leeway to banks to approve changes in customers' external commercial borrowing (ECB) plans with immediate effect.

The move will simplify the existing rules and previously needed the central bank's approval, the RBI said in a statement.

Banks may approve request from borrowers for reduction in the loan amount with respect to ECBs availed under the automatic route as long as the approval of the lender is obtained and the average maturity period is maintained, the RBI said.

Banks can also allow requests from borrowers for reduction in the all-in-cost interest ceiling, it said.