The Reserve Bank of India can take several steps to stabilize the falling rupee, including conducting open market operations to infuse more money into the banking system, lowering cash reserve requirements for commercial banks to free up more resources, intervening in currency markets by selling dollars from reserves, raising interest rates to attract foreign investment and add dollar liquidity, restricting outflows of dollars sent abroad, and issuing bonds to attract more dollar resources into the country. These coordinated measures can help ensure liquidity and stabilize the declining rupee.

1. Amit Agrawal

2.  Rupee has been on a free fall since a while.
 To stabilise the rupee crisis , some of the
steps that can be taken by the RBI are as
follows-

3.  It refers to the buying of government
securities and bonds in the open market in
order to expand the amount of money in the
banking system.

4.  Lowering Cash Reserve Ration (CRR), which is
mandatory parking of liquidity by commercial
banks with the RBI, will help in freeing up
more monetary resources into the system.

5.  Intervening in the currency market by selling
dollars from the dollar reserves of the
country.

6.  Raising repo rate can lure foreign investors to
invest in India and that can add more dollar
liquidity in the system.

7.  By restricting the flow of dollar sent to other
countries by people of foreign origin to their
respective native countries.

8.  Issue NRI bonds with lucrative interest to
attract more dollar resources to the country.

9.  These above mentioned steps may help to
ensure sufficient liquidity in the system and
help stabilise the rupee.
 Thanks.