RBI took short-term measures to arrest rupee fall, exports boost required: SBI chairman

BHOPAL: Reserve Bank of India's measures to arrest the rupee plunge are short-term measures and both the government and RBI should focus to enhance equity and foreign investment for the country's long term growth, as announced by SBI chairman Pratip Choudhary.

While commenting on the measures taken by the Reserve Bank to arrest the slide of the rupee, Choudhary said, “There is a need for more equity investment in the country and enhancing capabilities for raising exports as at present we import more and export less.”

Earlier, while addressing SBI officers at its regional headquarters, he said that the measures are short-term while the country needed steps for a long-term growth.

On 25th June, the government and the RBI announced new measures to boost foreign inflows, including hiking FII limit in sovereign bonds. Under the new steps to revive growth, the foreign institutional investors' (FIIs) ceiling on investment in government securities (G-Sec) has been raised to $20 billion from $15 billion.

In addition, the lock-in period for FII investment up to $10 billion into G-Secs has been trimmed to
three years from earlier five years.