A gradual weakening of the rupee, however, may add to inflationary pressures.
Rbi cut rates for teh third time to ease economic situation.
RBI will cut rates in its next policy announcement on June 2.
Traders believe the RBI will step in more strongly, if the rupee starts falling towards 65
The convertibility is RBI Governor's 'next big ambitious goal'.
Concern would kick in if imports stay at or over 100 tonnes a month.
The revision was announced before Indian markets opened on Thursday.
Lenders fret over stubbornly weak credit growth and still high funding costs.
India builds up record FX after Fed hints rate hike in future.
Reserve Bank of India (RBI) Governor Raghuram Rajan's decision to cut rates last week surprised even top officials.
India is Asia's third-best performing equity market.
Only three of India's 45 commercial banks have cut base lending rates since the Reserve Bank of India's surprise easing this month, hurting the government's drive to lift business investment.
Infrastructure bonds were launched by the RBI last year in a bid to help the government fulfill its plan to provide affordable housing to all by 2022
In cutting interest rates and giving a boost to the government's efforts to revive growth, RBI governor Raghuram Rajan displayed the pragmatism and flexibility familiar to those who work with him.
India's bond markets have rallied since last year on expectations the Reserve Bank of India will start cutting interest rates as early as February due to sharply easing inflation.
The central bank also said accepting money under such structures was a cognizable offence
Dealers also expect RBI to try to prevent excessive strength in the rupee in a bid to help exporters remain competitive
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The central bank will come out with two measures on restructuring to tackle financial stress, Rajan said.
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Indian companies are keenly waiting for reforms on rules related to land acquisition, labour, coal and power sector, and foreign direct investment in insurance sector.
The policymaker said the RBI had not reached the point where specific actions were under consideration.
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