Mumbai, June 7 -- The Reserve Bank of India (RBI) on Monday, 3 June, revised its guidelines on banks' exposure to large borrowers which had taken effect on 1 April this year. RBI had introduced the large borrower framework three years ago to reduce concentration risk in a banking industry laden with bad loans. The guidelines had capped every bank's exposure to a group of connected firms at 25% of its core capital, and to an individual company at 20%. In a notification on Monday, the central bank said that it has excluded all entities connected with the sovereign from the definition of group of connected companies. For instance, exposures where the principal and interest are fully guaranteed by the government or exposures to central and stat...