RBI cautions banks in lending to companies with exposure to West

RBI has asked banks to exercise caution in their business plans going forward, specifically on lending to companies with a significant exposure to Europe and the Americas. The concerns have been flagged in the wake of the Russian invasion of Ukraine, following which the government has been nudging state-owned banks to open special rupee vostro accounts to facilitate trade with Russia and other countries, as also the worries regarding an impending slowdown in the European and American markets.