๐ฅ๐๐ ๐๐ป๐ป๐ผ๐๐ป๐ฐ๐ฒ๐ ๐ฑ ๐ ๐ฒ๐ฎ๐๐๐ฟ๐ฒ๐ ๐ง๐ผ ๐ฆ๐๐ฟ๐ฒ๐ป๐ด๐๐ต๐ฒ๐ป ๐๐ผ๐ฟ๐ฒ๐ ๐ฅ๐ฒ๐๐ฒ๐ฟ๐๐ฒ๐ ๐๐บ๐ถ๐ฑ ๐จ๐ฆ-๐๐ฟ๐ฎ๐ป ๐ช๐ฎ๐ฟ
Reserve Bank of India Governor Sanjay Malhotra announced five steps on Friday to bolster foreign exchange reserves and draw foreign investments.
Foreign investors have been leaving Indian equities at a record pace. This has put pressure on the rupee and India's foreign exchange reserves. The US-Iran conflict has led to higher global crude oil and energy prices. This has increased India's import bill and put pressure on the balance of payments and current account deficit.
The five measures are:
The scope of specified securities under the Fully Accessible Route for government securities will now include all fresh issuances of 15-year, 30-year, and 40-year government bonds. Restrictions on short-term investments, concentration limits, and exposure to individual securities for foreign portfolio investors under the General Route will be removed. These steps aim to improve foreign participation in financing government borrowings.
Investment limits for Non-Resident Indians and Overseas Citizens of India in listed equity instruments traded on stock exchanges without SEBI registration will go up. All individual Persons Resident Outside India will now get the same benefit.
A concessional foreign exchange swap facility will be open until September 30, 2026. This aims to encourage external commercial borrowings by public sector undertakings.
Authorised dealer banks will get a similar facility to cover the full hedging cost for raising fresh FCNR(B) deposits with maturities of three to five years. This facility will also remain open until September 30, 2026.
The export proceeds realization period will return to nine months.
Sanjay Malhotra said these measures are expected to strengthen the balance of payments. He said the RBI will continue to make policy adjustments to promote exports and attract capital inflows.