The sub-committee of Financial Stability and Development Council (FSDC), chaired by RBI Governor D Subbarao met recently to discuss potential risk to stability of the domestic financial system.
The sub-panel expressed concern on the deteriorating asset quality of public-sector banks and discussed corrective measures for this.
Also, recently the high-level committee on external commercial borrowings (ECBs) held a meeting and discussed steps to relax ECB norms to allow leveraged firms to tap foreign markets for funds, and repayment of rupee loans from ECB proceeds were discussed.
There is genuine dollar demand from oil importers and other importers.
Since April 2013, the currency has weakened 13 per cent and currency dealers see it depreciating further against the dollar if no concrete measures are taken to arrest the fall.
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