Daijiworld Media Network - Mumbai

Mumbai, Nov 7: Reserve Bank of India (RBI) Governor Sanjay Malhotra has said the recent regulatory measures allowing banks to fund mergers and acquisitions (M&As) and easing foreign borrowing norms are designed to strengthen the real economy while ensuring financial stability.

Speaking at a State Bank of India event in Mumbai on Friday, Malhotra said the move to permit banks to finance domestic acquisitions, along with liberalised external commercial borrowing (ECB) norms for the real estate sector, was taken with “guardrails” to prevent excesses.

“These measures come with safeguards like capping bank funding at 70% of deal value and setting limits on the debt-to-equity ratio to ensure stability while allowing banks to benefit from new business opportu

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