New Delhi, February 8 The Indian rupee has recorded depreciation in three out of the four quarters of the calendar, the Finance Ministry informed Rajya Sabha on Monday. However, it also mentioned that it has been one of the best performing currency among other Asian currencies like the South Korean Won, Philippines Peso, Thai Baht and Japanese Yen.

In response to an un-starred question, Junior Finance Minister Pankaj Chaudhary said the rupee had depreciated (against the US dollar) by 0.05 per cent during January-March quarter and further declined by 1.64 per cent during April-June quarter. Though, in the next quarter – July to September – it recovered and recorded appreciation of 0.13 per cent, it again depreciated by 0.13 per cent in the following quarter.

“The exchange rate of the rupee is determined largely by the market forces of demand and supply. The Reserve Bank of India intervenes only to curb excessive volatility in the foreign exchange market and to maintain orderly conditions therein without targeting any specific level of the exchange rate,” Chaudhary said.

Paid up capital of LIC

In response to another question, Junior Finance Minister Bhagwat Karad said in a written reply that paid up capital of IPO-bound LIC has crossed ₹6,300 crore at the end of December. “Government, on an application made by LIC, permitted it to utilise the free reserves towards increasing its paid-up capital. As a result, the paid-up capital of LIC increased to ₹6,324.99 crore, as on December 31, 2021,” he said.

He also said in FY20, LIC paid ₹2,610.75 crore as dividend to the Government of India from profits pertaining to FY19, and no dividend was paid in FY21 as the Insurance Regulatory and Development Authority of India (IRDAI) had instructed insurers to refrain from dividend pay-outs from profits pertaining to the financial year ending Macrh 31, 2020.

Electoral bond

Meanwhile, in another written reply, Chaudahry said over ₹1,200 crore worth of bond, issued through the 19th tranche, was encashed in January this year. “The political party-wise details of encashment of electoral bonds are not collated centrally at SBI,” he said while adding that bonds amounting to ₹324.36 crore were encashed by political parties during FY21.

Electoral bond may be purchased by a person, who is citizen of India or incorporated or established in India. A person being an individual can buy bonds, either singly or jointly with other individuals. Accordingly, no electoral bonds are being issued to foreign entities.

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