RBI does not target any band for rupee, allows it to find its own level: Guv Malhotra
Mumbai (PTI): Reserve Bank Governor Sanjay Malhotra on Friday said the central bank does not target any band for the rupee in the forex market, and allows the domestic currency to find its own correct level.
The governor's statement came at a time when the rupee breached the 90-mark against the US dollar, and is hovering near that level.
"We don't target any price levels or any bands. We allow the markets to determine the prices. We believe that markets, especially in the long run, are very efficient. It's a very deep market," he said while replying to a question on rupee depreciation at a post-monetary policy press meet.
Malhotra said fluctuations in the market keep taking place, and the effort of the RBI is always to reduce any abnormal or excessive volatility.
"And that is what we will continue to endeavour," he added.
In its bi-monthly monetary policy, the RBI announced three-year USD/INR Buy Sell swaps of USD 5 billion this month.
When asked if the USD-INR swap is aimed at checking rupee depreciation, Malhotra said, "It is a liquidity measure. It is not to support the rupee".
Stressing that RBI does not target any level of rupee against the US dollar, he said the central bank allows "the rupee find its correct position, correct level".
The governor further said the country has sufficient foreign exchange reserves and the current account is manageable, and given the strong fundamentals of the economy, the country should witness good capital flows going forward.
Foreign portfolio investment (FPI) to India recorded a net outflow of USD 0.7 billion in 2025-26, so far (April-December 03), due to unabated withdrawal from the equity segment.
Flows under external commercial borrowings and non-resident deposit accounts moderated compared to the last year.
As of November 28, 2025, India's foreign exchange reserves stood at USD 686.2 billion, providing a robust import cover of more than 11 months.
The governor further said that, having reduced the policy rate (repo) by 25 basis points, the focus will now be on transmission of the rate cut to the real economy.
According to the RBI's November bulletin, the depreciation of the rupee in October was due to a stronger dollar, following the US Fed's policy announcement to lower the Federal funds rate.
Nevertheless, strong fundamentals, such as stable inflation, a resilient growth outlook for the Indian economy, a narrower current account deficit, steady services exports, robust private remittances, and robust foreign exchange reserves, have contributed to the rupee being the least volatile among emerging market and developing economies.
The rupee has performed better than the Euro, and its depreciation has been in line with that of other currencies, such as the Japanese Yen and the Korean Won (for April to November 2025-26).
The central bank has announced various measures over the last 3 years to diversify and expand the sources of foreign exchange funding, aiming to mitigate exchange rate volatility and dampen global spillovers.
The RBI bi-monthly policy in October had announced some measures to enhance the use of the rupee in international trade.
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BJP using women's quota bill as front to pass Delimitation Bill that will break India: Mamata
Cooch Behar (WB) (PTI): Chief Minister Mamata Banerjee on Friday alleged the BJP-led NDA government at the Centre was using the proposed amendment to the women's quota law in Parliament as a front for the Delimitation Bill that would "break the country into pieces".
The TMC will fight this Central government's move at every step, she asserted at her party's poll rally here.
The Constitution (131st Amendment) Bill to tweak the women's quota law, along with the Delimitation Bill and the Union Territories Laws (Amendment) Bill, to implement the proposed amended women's quota law, in the Union territories of Delhi, Puducherry and Jammu and Kashmir, were introduced in the Lok Sabha on Thursday.
According to the Constitution amendment bill, Lok Sabha seats will be increased to a maximum of 850 from the current 543 to "operationalise" the women's reservation law before the 2029 parliamentary polls, following a delimitation exercise based on the 2011 Census.
Seats will also be increased in state and Union territory assemblies to accommodate 33 per cent reservation for women.
Opposing the Centre's move, Banerjee alleged that "the BJP brought the Delimitation Bill while keeping the women's reservation bill at the front".
"The BJP is trying to increase the number of seats in the Lok Sabha to nearly 850 through the Delimitation Bill. It will break the country into pieces," the TMC supremo said.
She also alleged that Prime Minister Narendra Modi was not speaking the truth about the development of north Bengal at a BJP rally last week.
"The prime minister said nothing was done for the development of north Bengal. But we spent Rs 1.72 lakh crore on the development of the region," Banerjee said and asked Modi to cross-check data before making such remarks.
