MARKET INTERVENTION: RBI sold dollars and bought rupees in September andOctober, according to data from the central bank, which only steps in to smoothvolatility. Traders said the RBI has intervened multiple times in the FX marketover the past month, including on December 15. RBI likely intervened via state-run banks which were seen heavily selling dollars pushing the rupee up in latetrade,
OVERSEAS BORROWING BY MICRO LENDERS: On December 19, RBI allowedmicrofinance institutions to raise up to $10 million during a financial yearthrough external commercial borrowings for permitted end-uses.
DEREGULATION OF INTEREST RATES ON NON-RESIDENT DEPOSITS: OnDecember 16, RBI allowed banks to set interest rates on non-residentexternal rupee deposits and ordinary non-resident accounts to help attractmore capital inflows.
CUTS FX TRADING LIMITS: On December 15: Reduced the netovernight open position limit of authorised dealers in the foreignexchange market, lowering the capacity of market participants totake trading positions.
OVERSEAS BORROWING RULES FOR COMPANIES EASED: On November23: Raised the ceiling on interest rates that companies can pay on foreignloans, provided the funds are brought into India immediately
FOREIGN INVESTMENT LIMITS IN GOVT, CORPORATE DEBT RAISED: OnNovember 17, The government increased the ceiling on foreign institutionalinvestment in government and corporate debt by $5 billion each.
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