How the RBI is creating conditions for foreign flows to come back to India

The RBI announced five measures on July 6 to further liberalise foreign exchange. The measures are aimed at creating a more enabling environment to attract dollars through banking deposits, ECB, FPI

At a time when domestic financial markets are witnessing record outflows of overseas investment and the country’s current account deficit is widening, the Reserve Bank of India (RBI) has announced a bevy of measures to bring back foreign capital.

The RBI announced five measures on July 6 to further liberalise foreign exchange flows. Broadly, the measures are aimed at creating a more enabling environment to attract dollars through three channels: banking deposits, External Commercial Borrowing (ECB) and foreign portfolio investment (FPI) in debt.

What are the changes the central bank has implemented and how would they work? Let’s find