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RBI lifts restrictions on film financing

Hyderabad, Oct. 24: After being disappointed by the box office for most part of the year, the film industry finally has something to cheer about, but it’s not the ticket window that brings it the good tidings. Showing a ray of hope is the Reserve Bank of India, which has lifted all limitations on film funding.

“It is now easier to borrow from banks to make films,” RBI deputy governor Vepa Kamesan said.

Although the government had thrown open the floodgates for FDI in the film industry, the web of regulations had not made cinedom a particularly good investment destination. Today’s move is likely to do just that—encourage investors to fund

“It is coming soon. Already in Chennai and Mumbai, the nationalised banks are processing applications,” he added.

Earlier, KPMG India had initiated plans to set up a venture fund for the Indian film industry to the tune of $ 50 million, with promises of more. Anindya Roywchowdhary of KPMG India recently said in Hyderabad that several film personalities, corporates and FIs had been approached for the creation of a venture fund.

The RBI deputy governor said the problem of currency shortage had been met with effective supply at all points. “We have processed the demand and have urged opening of special branches even on Sundays to meet the demand. There is absolutely no shortage,” he added.

Meanwhile, RBI governor Bimal Jalan lamented that India ranked low in the usage of information technology, though the country excelled as a major exporter of software.

Speaking at an award presentation ceremony at the Institute of Development and Research in Banking Technology here, Jalan said there was a need for awareness that IT was not just a tool for the banking industry.

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