India Central Bank Limits Rupee Outflows

India’s central bank has put further restrictions on the amount of money that companies and individuals can send out of the country.

It hopes to ease the pressure on the rupee, which has lost about 15% of its value against the dollar so far this year.

The currency has been hit by a weaker Indian economy and investor fears of more money leaving the country.

This has led to higher prices for key items such as food and fuel.

Under the new rules, the limit for overseas investments by Indian companies has been cut to 100% of a company’s net worth, from 400% previously.

However, state oil companies were granted an exemption, while others can apply to exceed the limit if they can show a genuine requirement.

The amount of money that individuals can send overseas was cut to $75,000 each financial year from $200,000.

The Reserve Bank of India (RBI) has also banned imports of gold coins and bars, which constituted about a third of total bullion demand in India last year.

Local buyers will also have to pay cash for their gold.

via BBC

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