Global investment firm Citigroup is bullish on Indian equity markets.
Analysts expect modest recovery in Indian economy.
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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.
CLSA says government actions to facilitate investment more important for revival than a token monetary easing.
CLSA expects annual net inflows of $15 billion from domestic investors over the next few years in India.
The rupee had edged higher by four paise to end at 61.51 against the American currency in yesterday's trade on fresh selling of dollars by banks and exporters.
The dollar's weakness against other currencies overseas and a higher opening in the domestic equity market supported the rupee, forex dealers said.
The rupee had hit an intra-day low of 61.6750 on Friday, its lowest level since Oct. 17.
Traders are looking ahead at the consumer prices data due on Wednesday, amid rising expectation the Reserve Bank of India could opt for earlier-than-expected cuts in interest rates should inflation continue to ease.
The central bank will come out with fresh set of guidelines for companies applying for on-tap bank licence
The partially convertible rupee closed at 61.31/32 per dollar, unchanged from its Tuesday close.
The RBI's warnings signal its concern that unhedged firms could be a vulnerable link should global markets buckle.
Cleaning up India's grubby business climate is top of the agenda for both regulators and the government.
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In the offshore non-deliverable forwards, the one-month contract was at 61.58, while the three-month contract was at 62.18.
Rajan added "many" market participants were convinced that India could hit the RBI's target of bringing down consumer inflation to 6 percent by January 2016.
In New York market, the dollar continued to weaken against its rivals yesterday on a day devoid of major data releases out of Europe and the US.
Forex dealers attributed the rupee's fall to increased demand for the US currency from importers and a lower opening in the domestic equity market.
Forex dealers said besides increased selling of the American currency by exporters and banks, the dollar's weakness against other currencies overseas also supported the rupee, but a lower opening in the domestic equity market limited the rise.
Standard and Poor's raised the outlook for India's "BBB-minus" rating back to "stable" from 'negative,' saying Prime Minister Narendra Modi government's 'strong' mandate would allow it to implement fiscal and economic reforms.
The rupee had gained 2 paise to end at 60.93 against the greenback in Thursday's trade.
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