2. MARKET INTERVENTION: RBI sold dollars and bought rupees in September and
October, according to data from the central bank, which only steps in to smooth
volatility. Traders said the RBI has intervened multiple times in the FX market
over the past month, including on December 15. RBI likely intervened via state-
run banks which were seen heavily selling dollars pushing the rupee up in late
trade,
3. OVERSEAS BORROWING BY MICRO LENDERS: On December 19, RBI allowed
microfinance institutions to raise up to $10 million during a financial year
through external commercial borrowings for permitted end-uses.
4. DEREGULATION OF INTEREST RATES ON NON-RESIDENT DEPOSITS: On
December 16, RBI allowed banks to set interest rates on non-resident
external rupee deposits and ordinary non-resident accounts to help attract
more capital inflows.
5. CUTS FX TRADING LIMITS: On December 15: Reduced the net
overnight open position limit of authorised dealers in the foreign
exchange market, lowering the capacity of market participants to
take trading positions.
6. OVERSEAS BORROWING RULES FOR COMPANIES EASED: On November
23: Raised the ceiling on interest rates that companies can pay on foreign
loans, provided the funds are brought into India immediately
7. FOREIGN INVESTMENT LIMITS IN GOVT, CORPORATE DEBT RAISED: On
November 17, The government increased the ceiling on foreign institutional
investment in government and corporate debt by $5 billion each.
