Economic Affairs Secretary Ajay Seth on Thursday said the measures taken by Reserve Bank of India (RBI) will boost inflows of overseas funds and help in strengthening the rupee against the US dollar.
The central on Wednesday raised the overseas borrowing limits for companies and liberalised norms for foreign investments in government bonds as it announced variojus measures to boost foreign exchange inflows. Seth said RBI measures, including on ECB ( External Commercial Borrowing ), are transitory and for shorter duration, and would help in stregnthening the foreign currency inflows into the country.
The reserve Bank on Wednesday increased the ECB limit under the automatic route from USD 750 million or its equivalent per financial year to USD 1.5 billion and eased the norms for foreign portrfolio investments in the debt market. Seth also expressed optimism that the global challenges would subside in the short term.
RBI raises overseas borrowing norms to improve forex inflows
