The new bond was changing hands at 7.72 per cent.
Traders believe the RBI will step in more strongly, if the rupee starts falling towards 65
S&P warned about spending on subsidies and heavy government debt.
The RBI targets inflation at 6 percent by January 2016 and 4 percent for 2017/18.
RBI governor Raghuram Rajan says a cut in cash reserve ration will not at all impact lending rates.
Reserve Bank of India (RBI) Governor Raghuram Rajan's decision to cut rates last week surprised even top officials.
Will RBI chief have the final say, in the form of a veto
India needed more specialists within government
India's banks rely on overnight borrowings to fund longer-term lending.
India allows foreign investors to buy upto $81 bn
Earlier, India said the headline annual consumer price inflation accelerated to 5 per cent, compared with a 4.4 per cent print in November.
.jpg)
The Reserve Bank of India sold dollars via state-owned banks around 62.3575 per dollar to contain the rupee's fall, traders said.
.jpg)
Large state-run entities and business houses will not be allowed to set up small finance banks, which will have to comply with statutory reserve requirements.
In the offshore non-deliverable forwards, the one-month contract was at 62.26/36, while the three-month was at 62.83/93.
The Reserve Bank of India (RBI) raised the minimum capital requirement for so-called shadow banks and tightened rules on deposits and bad loans to avoid any potential risk to the economy from these rapidly growing finance firms by regulating them like traditional banks.
Foreign investors have bought around $2.4 billion in both debt and equity so far in October, pushing the total inflows to nearly $36 billion so far in the year.
The partially convertible rupee closed at 61.45/46 per dollar, weaker from Wednesday's 61.35/36.
In the offshore non-deliverable forwards, the one-month contract was at 61.56/66, while the three-month contract was at 62.16/26.
The RBI's warnings signal its concern that unhedged firms could be a vulnerable link should global markets buckle.
The big test will come at the end of March when the fiscal year ends and banks tend to hold on to cash.
© 2025 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances