Mumbai: Amid rising inflation in the country, the Reserve Bank of India (RBI) on Wednesday announced a series of measures to support the rupee and attract foreign investment. Some of these major measures include relaxations of the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) on additional FCNR(B) and NRE Term Deposits, relaxation of rules for REITs and raising limits on external borrowing.Also read – Inflation has pushed 71 million people into poverty since the war in Ukraine
In the recent past, the Indian Rupee has been on a downward trend and has hit all-time lows several times. The rupee also hit a record low of 79.38 to the dollar on Tuesday. Also Read – US Stocks, Crude Oil Prices Fall As Markets Extend Slump
The RBI also announced other measures to increase foreign exchange inflows, including temporarily allowing banks to raise new FCNR(B) and NRE deposits without reference to existing interest rate regulations. Read also – Latest news from the 7th wages commission: soon an increase in AD for central government employees? Check details here
Some of the other measures announced by the RBI also included allowing foreign investors to invest in short-term corporate debt and allowing more government securities to be purchased under the fully accessible route.
The announcement of the measures came from the RBI just days after the central government raised import duties on gold, in addition to increasing levies on petrol and diesel exports in a bid to control a rapidly widening current account gap.
The RBI has also decided to increase the automatic lane limit by $750 million or its equivalent per fiscal year to $1.5 billion.