India intensifies measures to stem capital outflows, stabilise the rupee

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August 19, 2013

NEW DELHI - The Reserve Bank of India has introduced new measures to stem capital outflows, including tighter restrictions on overseas direct investments (to 100% of companies’ net worth, down from 400% previously), capping outward remittances by individuals to US$75,000 per year from US$200,000 previously, and prohibiting outflows on acquisition of overseas property. The measures come after the Government measures announced just days ago to reduce the current account deficit through hikes in import duties and fuel price reforms, along with measures to boost capital inflows.