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News Brief | April 2013

Proposal for raising sectoral exposure cap for power sector

A proposal is being mulled upon for increasing the sectoral exposure limit of commercial banks and financial institutions to the power sector to 20 per cent so that the liquidity can be channelised into the power sector. . Currently, according to RBI guidelines, the exposure ceiling limits of commercial banks to the power sector is 15 per cent of capital funds in case of a single borrower and 40 per cent for a borrower group.
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