The Reserve Bank of India on Wednesday stated in its monetary policy that overseas branches or subsidiaries of Indian banks will be allowed to refinance external commercial borrowings (ECBs) of high rated PSUs and corporates by raising fresh ECBs. The regulator pointed out that currently Indian corporates are permitted to refinance their existing ECBs at a lower all-in-cost. The overseas branches/subsidiaries of Indian banks are, however, not permitted to extend such refinance. “In order to provide a level playing field, it has been decided, in consultation with the government, to permit the overseas branches/subsidiaries of Indian banks to refinance ECBs of AAA-rated corporates as well as Navratna and Maharatna PSUs, by raising fresh ECBs,” the RBI indicated in its policy statement. Revised guidelines are expected to be issued within a week.