The Reserve Bank of India, RBI has said that banks can raise funds overseas above 50 per cent of their Tier-I capital with a minimum maturity of three years, and swap these borrowings with the central bank at a concessional rate for one to three years. In a notification issued yesterday, RBI stated that the swaps shall be available at a concessional rate of a hundred basis points, below the market rate, for all fresh borrowings with a minimum tenure of one year, and a maximum tenure of three years, irrespective of whether such borrowings are in excess of 50 per cent of their unimpaired Tier-I capital or not. It said that despite the swaps being for the entire tenure of the borrowing, the rate shall be reset after every one year from the date of the swap at 100 bps lower than the prevailing market rate, at the time of reset. The apex bank also said that banks are free to borrow in any foreign currency but the swaps will be available only for conversion of the US dollar equivalent into rupees and will be computed at relevant cross rates on that day.