With a view to providing greater flexibility to Authorised Dealer Category – I banks in seeking access to overseas funds, this facility was further liberalised in October 2008 and the aforesaid limit was raised to 50 per cent of their unimpaired Tier I capital.
Apart from this window, banks in India also have access to global financial markets to raise regulatory capital instruments, including capital funds raised/augmented by the issue of innovative perpetual debt instruments and debt capital instruments in foreign currency and any other overseas borrowings with the specific approval of the Reserve Bank. Similarly, there are restrictions on the borrowing abroad by financial institutions.