RBI in discussion on smooth trading by foreign investors: Khan
The Reserve Bank on Thursday said it is in the process of discussing with various players to see what best can be done to smoothen trading by foreign investors.
Bhubaneswar: The Reserve Bank on Thursday said it is in the process of discussing with various players to see what best can be done to smoothen trading by foreign investors.
RBI Deputy Governor H R Khan also said that the RBI is also discussing Euro Clearing, which is the world's largest securities settlement system.
"There are quite a few issues (on joining Euroclear). Already foreign investors are allowed to invest in India," Khan told reporters on the sidelines of a function here.
Stating that the RBI had allowed for three government securities up to USD 30 billion, Khan said: "We had USD 20 billion for general and 10 billion for long-term investors. Now USD 5 billion has been added to general to make it USD 25 billion."
He said investments were happening through custodians. "Some people want they should be in a position to trade in a hassle-free manner, less of registration.
"We are working out how to create a framework so that the registration process becomes faster and simpler. But we have to take into account whether it will affect the liquidity in the market," he said replying a question.
Replying to another question, Khan said the RBI was planning to introduce plastic currency notes on pilot basis within one year.
"Bhubaneswar is one of the places where plastic currency notes will come under the pilot project," he said.
Khan also admitted that the RBI was unable to meet the required demand for currency coins in the market.
"We are trying to increase its production," he added.