This comes amid a falling rupee, which has triggered a slew of regulatory actions aimed toward bringing again abroad inflows and chopping import-related greenback funds.
The central financial institution additionally sought suggestions on its July 6 transfer to liberalise international trade inflows, the folks stated.
An govt director at RBI is believed to have chaired the assembly, which was attended by representatives from about 18 banks, together with public, personal and international lenders.
RBI didn’t formally remark in regards to the assembly.
Banks advised the RBI that measures to spice up foreign exchange flows, be it exterior business borrowings or deposits from non-resident Indians, will take time to trickle down, in response to the folks current on the assembly.
The rupee plunged to a contemporary report low of 79.66 a greenback on Tuesday, earlier than closing at 79.60.
The greenback index, which measures the unit towards a basket of main currencies, surged 12.3% this yr, amid the Russia-Ukraine battle that has sparked provide disruptions.
In Europe, which is dealing with a recession, the euro foreign money hit parity with the US greenback for the primary time in additional than 20 years. Europe’s native unit on Tuesday touched a brand new low of round $1 as worries in regards to the well being of the worldwide financial system spooked traders.
Financial institution treasury heads current on the assembly stated India’s basic and macro parameters have been resilient, the rupee would discover its personal prudent worth and that the macroeconomic state of affairs would flip beneficial for India in 1 / 4 or two, sources stated.
The rupee has misplaced 6.6% to date this yr, turning into the seventh worst-performing Asian foreign money, in comparison with a 5.44% fall within the Chinese language Renminbi’s worth towards the greenback, Bloomberg information compiled by ETIG confirmed.
The central financial institution requested contributors on the assembly in regards to the trajectory of the benchmark bond yield. Banks on common foresee a yield vary of seven.75-8% for the benchmark bond this yr.
The matrix, which gives a pricing scale for bond gross sales, is a crucial yardstick particularly because the central financial institution manages the finance ministry’s report fundraising of about Rs 14.31 lakh crore (gross).
A benchmark yield assumes significance at a time when US Treasury yields are rising.
The broader the differential between the 2 sovereign gauges, the higher is the lure for international portfolio traders.
Abroad funds have offered a web $1.87 billion in native debt securities to date this yr.
“The RBI desires to make sure rupee liquidity as it’s going by a fee hike cycle,” stated an govt who participated within the assembly.
The banking regulator had begun to boost charges from Might 4, when it hiked the benchmark repo fee by 40 foundation factors (bps) and adopted it up with one other 50 bps enhance the subsequent month.
Liquidity within the system performs a key position in transmitting advantages of these fee actions.
The excess liquidity within the system is now at Rs 2.20 lakh crore in comparison with Rs 5.71 lakh crore on Might 4, information from the RBI confirmed.