The Reserve Bank of India (RBI) Wednesday took the first step to attract dollar inflows amid an unabated outflow of portfolio funds, seeking to salvage the sinking rupee from its lifetime lows against the US currency and conserve a fast-depleting foreign exchange stockpile assiduously accumulated when global liquidity was plentiful.
The central bank eased several curbs on the flow of foreign investments, including the terms governing the rates of interest offered to foreign currency deposits by overseas Indians. The threshold on External Commercial Borrowing (ECB) under the automatic route has also been doubled.