New Delhi, Dec. 4 -- Foreign lenders will no longer be exempted from large exposure caps to their branches outside India, and they will also have to comply with stricter intragroup exposure limits, according to the latest changes made by the regulator to curb concentration risk.

The Reserve Bank of India (RBI) has clarified that exposures of an Indian branch of a foreign bank to its head office or any overseas branches or subsidiaries must be treated as regular counterparty exposures and brought under Large Exposures Framework (LEF) limits, according to the amendments announced on Thursday.

Earlier, such exposures were often interpreted as falling under an exemption clause.

The RBI also mandated that all transactions between foreign ba...