Mumbai, May 4 -- The Reserve Bank of India (RBI) on Friday granted standalone primary dealers (SPDs) permission to borrow in foreign currency from their parent companies and authorised entities.

The central bank specified that they can use overdraft facilities in nostro accounts exclusively for operational purposes.

Nostro accounts are bank accounts held by a domestic bank in another country, denominated in the currency of that foreign country.

For instance, an SPD engaged in transactions involving euros would open an account with a bank in the European Union to facilitate settlement operations.

The RBI has expanded the regulatory framework to include standalone primary dealers (SPDs) concerning risk management and inter-bank transact...