The Reserve Bank of India (RBI) has revised the rules to allow banks in the country and their overseas branches to lend to persons resident in, and peer banks in, Bhutan, Nepal, and Sri Lanka. This is expected to facilitate cross-border trade transactions, including payments.
The RBI said it has also extended the time for repatriating money in foreign currency accounts maintained in the International Financial Services Centre (IFSC) in India from one month to three months. This will encourage Indian exporters to open accounts with IFSC banking units and increase foreign exchange liquidity in the IFSC
