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Offshore rupee market: RBI sets up panel led by Usha Thorat

The Reserve Bank said it would also recommend measures to address concerns, if any, arising out of offshore rupee trading besides proposing measures to generate incentives for non-residents to access the domestic market.

The Reserve Bank of India on Thursday announced a task force headed by former RBI deputy governor Usha Thorat to examine issues related to offshore rupee markets and recommend policy measures to ensure stability of the external value of the domestic currency.

The eight-member task force will assess the causes behind the development of the offshore rupee market and study the effects of the offshore markets on the rupee exchange rate and market liquidity in the domestic market.

The Reserve Bank said it would also recommend measures to address concerns, if any, arising out of offshore rupee trading besides proposing measures to generate incentives for non-residents to access the domestic market.

The terms of reference of the task force also include measures to generate incentives for non-residents to access the domestic market and examine the role, if any, International Financial Services Centres (IFSCs) can play in addressing these concerns.

The central bank further said the panel headed by Thorat would be submitting its report by the end of June 2019.

The RBI said it has been guided by the objective of developing deep and liquid on-shore financial markets that act as a price setter of the rupee globally.

The other members of the panel include a nominee from the Department of Economic Affairs, nominee from the Securities and Exchange Board of India, Ajit Ranade, Chief Economist of the Aditya Birla Group, Sajjid Chinoy, Chief Economist, JPMorgan, Surendra Rosha, CEO, India, HSBC, Adviser-in-charge, Department of Economic Policy and Research, RBI, and Chief General Manager, Financial Markets Regulation Department, RBI.