Govt taking steps to promote rupee globally

New Delhi, Dec 18: The government today said it is taking steps to promote the rupee in global markets and increase its competitiveness vis-a-vis other currencies.

"The Government has been taking measures to promote the internationalisation of the Indian Rupee," Minister of State for Finance Jayant Sinha said in the Lok Sabha.

In a written reply to a query on whether the government proposed to internationalise the domestic currency, Sinha said however that there is "no definitive roadmap set for internationalisation of the Rupee since it would require full capital account convertibility."

He added that there are restrictions on the rupee being used for international transactions. Sinha further said: "RBI in consultation with the government has recently put in place a framework for issuance of rupee denominated bonds overseas by Indian corporate."

In addition, non-residents are permitted to hedge the rupee risk of their exports and imports to and from India and loans denominated in Indian rupees with Indian authorised dealer bank onshore, Sinha added.

He also said that the Standing Council of Experts on Indian Financial Sector has submitted its first report recommending policy proposals for improving the international competitiveness of currency, equity and commodity derivatives markets of India through a host of market micro-structure, regulatory and taxation reforms.

The report has been circulated to all financial sector regulators and ministries concerned to examine and take necessary action to improve international competitiveness of Indian markets.

Replying to a separate query, Sinha said that as on December 15, 2015, all issues uploaded on Project Monitoring Group (PMG) portal pertaining to 335 projects stand resolved and 295 projects are still under consideration of PMG.

With an objective to create an institutional mechanism for fast-tracking of stalled investment projects, a cell in the nature of PMG had been set up in June 2013.

PTI