RBI raises banks' exposure for infrastructure finance companies

The Reserve Bank of India (RBI) on Friday said banks can now have an exposure of up to 20% to infrastructure finance companies, in a move aimed at boosting funding for the infrastructure.

The RBI also introduced a new category for these infrastructure finance companies under non-banking finance companies, the statement said.

Asia's third-largest economy suffers from poor roads, ports and other infrastructure, but funding is hard to come by largely due to failure to introduce reforms in insurance, pension, banking and the bond markets.