The Reserve Bank of India on Monday said it would allow companies to borrow more from overseas to pay back their high cost rupee loans. The central bank has also allowed new category of investors like sovereign wealth funds, pension funds, insurance funds and foreign central banks to buy Indian government bonds. Commenting on the measures announced by the RBI, Dr. C Rangarajan Chairman Economic Advisory Council to the Prime Minister said that the attempt has been to open up larger capital inflows to the country.
