Reserve Bank of India’s governor Sanjay Malhotra Friday clarified that the relaxation proposed under external commercial borrowing limit applies only for real estate projects that comply with the foreign direct investment rules and not intended for ‘speculative’ purposes. He also stated that acquisition finance is an integral part of the banking industry and will benefit the economy and provide banks with additional business. “I wish to clarify that ECB will be permitted only for FDI-compliant real estate projects and remain prohibited for speculative dealing or loans for land or property trading,” the governor said speaking at SBI Banking and Economic Conclave. The existing ECB rule states that such loans cannot be raised for real estate activities.