Mumbai: The Reserve Bank on Tuesday raised the eligibility limit for foreign exchange remittances under the Liberalised Remittance Scheme (LRS) to $125,000 from $75,000 last year, in view of the recent stability in the foreign exchange market. The RBI had in August last year reduced the ceiling under the LRS from from $200,000 to $75,000 per person annually due to the worsening current account deficit and volatility in the rupee.
When there was criticism that government was bringing back capital controls, Dr Rajan denied this and said it was a temporary measure. Also in a move to improve the depth and liquidity in the domestic foreign exchange market Dr Rajan permitted foreign portfolio investors and domestic entities to participate in the domestic exchange traded currency derivatives market to the extent of their underlying exposures plus an additional $10 million.
RBI ends NBFC permit for Margdarsi
The Reserve Bank has cancelled certificates of registration of three non-banking financial companies (NBFCs) belonging to Andhra Pradesh as these were carrying business as non-banking financial institutions (NBFIs). “The RBI has cancelled the certificate of registration of three NBFCs for carrying on the business of non-banking financial institution,” RBI said in a notification. Of the three NBFCs, Vishnu Finance & Investment Private Limited and Margdarsi Investment and Leasing Company Private Limited are based in Hyderabad. Siber Financial Services Private Limited belongs to Vijaywada.
