RBI asks banks to allow clients to draw loans

MUMBAI (Reuters) - The Reserve Bank of India (RBI) on Monday directed banks to allow corporate clients to draw loans against sanctioned limits approved to them.

In a notification posted on its Website, the RBI said some banks have been averse to disbursing working capital and term loans to their clients even when the borrower has followed the terms associated with the sanction of the loan.

It has also directed banks to consider restructuring the dues of small and medium enterprises.