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RBI withdraws forex funding plan
February, 04th 2010

The Reserve Bank of India (RBI) said on Wednesday it had decided to withdraw a short-term foreign currency funding facility provided to non-banking financial and home finance firms, with immediate effect.

"The decision has been taken after a review of the prevailing macro-economic conditions and improvements in the domestic credit and liquidity conditions," the Reserve Bank of India said in a statement.

It had introduced this facility in October 2008, which allowed the firms to raise foreign currency borrowings from the central bank to refinance short-term liabilities.

 
 
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