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Wednesday, Jul 07, 2004

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`RBI's new role is delegation, liberalisation'

Our Bureau

Mangalore , July 6

THE Chief General Manager, RBI Mumbai, Mr F.R. Joseph, has said that the central bank's role has changed from regulation and control to delegation and liberalisation.

Banks have been permitted to make available foreign exchange to individuals, corporates, exporters and importers without any hassles.

A press release by Corporation Bank said here on Tuesday that Mr Joseph was addressing the executives of the bank on `External sector reforms' at the corporate office on Monday.

The foreign exchange reserve, which was as little as $1 billion in 1991, has gone up to $118 billion. He said that the country has prepaid a major loan to the International Monetary Fund and has also retired the high-cost Resurgent India Bonds.

External commercial borrowing limits under the automatic route for corporates have been enhanced to $500 million.

Restriction on capital account convertibility on rupee has been removed, and an individual is free to invest abroad subject to a ceiling of $25,000 per annum. Many more such reforms are in the process, he added.

The Chairman and Managing Director of Corporation Bank, Mr K. Cherian Varghese, welcomed the gathering.

Mr P.K. Gupta, Executive Director, Mr M.V. Nair, General Manager, and Ms Vanitha K. Venugopal, Deputy General Manger of RBI, Bangalore, were present.

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