Mumbai, Oct. 2 -- The Reserve Bank of India (RBI) on Wednesday proposed to withdraw its August 2016 framework on Enhancing Credit Supply for Large Borrowers through Market Mechanism.

The framework originally aimed to address concentration risk arising from aggregate credit exposure of the banking system to a single large corporate and encourage such large corporates to diversify their sources of funding.

"Upon review, considering, inter-alia, the changes evident in the profile of bank funding to corporate sector since the introduction of the guidelines, it is proposed to withdraw the guidelines," the RBI said.

At a post-policy conference, RBI governor Sanjay Malhotra said the central bank is not worried about a resurgence in concentrat...