(Online Course) IAS Interview: Economic Issues - Supporting the Rupee

Economic Issues

Supporting the Rupee

Question. What are the administrative and policy measures taken to arrest the decline of rupee against dollars?
There are some new measures taken by RBI.

Answer:

  • The rules governing overseas investments have been relaxed in certain crises so as to increase the supply of dollars in domestic market.
  • The ceiling on debt instruments by finish institutional investors and the interest cap on external commercial borrowings have been raised.
  • The lock-in-period for overseas investors in infrastructure bonds has been reduced.
  • RBI damped down on forward trading in finish exchange is sto curb the rampant speculation.
  • New incentives provided to NRI’s to invest more with banks in India

Civil Services Interview