Why banks cheer new overseas investment rules?

The government's new foreign investment rules, notified on August 22, make it difficult for wilful defaulters and those having an NPA account in India to invest overseas. As per the new rules, such investors will have to obtain a no-objection certificate (NOC) from the lead bank, regulatory body or investigative agency before making investments abroad. If the concerned authorities fail to furnish the NOC within 60 days of receiving an application, it may be presumed that there is no objection to the proposed transaction. The rules will ensure that banks are better placed to secure assets and protect their balance sheets, while making it easier for domestic corporates to invest abroad.