central Bank seeks to boost bank lending to push growth
nEW dELHI, Oct. 2 -- The RBI has allowed banks to fund acquisitions and raised the cap on loans for buying shares at IPOs, as part of a raft of measures to boost bank lending. The measures included relaxation of rules for lending to large corporate groups. Giving banks a breather on capital, the RBI said the implementation of so-called expected credit loss rules, which mandate banks to set aside more funds for potential bad loans, will be effective on April 1, 2027. It also proposed a new model of deposit insurance, where safer banks will pay less premiums while weaker ones pay relatively more.SEE PAGE 16...
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