Indian Rupee Gains as RBI Eases Rules to Boost Foreign Inflows
- RBI increases borrowing limit for companies to $1.5 billion
- New policies come after rupee tested a series of record lows
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India’s central bank mounted a fresh defense of the beleaguered rupee, announcing a raft of measures to boost foreign-exchange inflows, that analysts said may not immediately result in large capital flows.
The steps include doubling borrowing limits for companies from overseas to $1.5 billion during a financial year, temporarily removing any interest-rate ceiling for banks to attract deposits from non-residents, and liberalizing rules for foreigners to invest in local-currency bonds, the Reserve Bank of India said in a statement Wednesday. The rupee gained.