The Reserve Bank of India ("RBI") has clarified the amount of capital fund that can be raised overseas through issuance of PDI in Additional Tier 1 capital. In this regard it has stipulated that:
1) not more than 49% of the eligible amount can be issued in foreign currency and/or in rupee denominated bonds overseas; and
2) the term 'eligible amount', in this regard shall mean the higher of:
(a) 1.5% (one point five percent) of Risk Weighted Assets (RWAs); and
(b) Total Additional Tier 1 capital,
as on 31st March of the previous financial year.
Originally published 05 October 2021
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