RBI relaxes norms for foreign investment in startups

The RBI relaxed foreign investment norms in financial services firms, startups and in investments by foreign regulated capital investors.Foreign Venture Capital Investors (FVCIs) can invest in Indian startups without prior permission of the RBI. The Reserve Bank of India also allowed banks to approve extension of external commercial borrowings on their own provided the debt is unpaid and has not

defaulted before. RBI decides to allow FDI up to 100% in other financial services.

The Reserve Bank of India (RBI) has opened the gates for more overseas investment coming to India by a series of steps liberalising the foreign direct investment rules, even as it braces for a possible $26-billion outflows on account of FCNR-B deposit (foreign currency nonresident-bank) maturities.