Home | Growth | India Faces Its Worst Economic Crisis Since 1991 When It Had To Airlift 67 Tons Of Its Gold For A Loan

India Faces Its Worst Economic Crisis Since 1991 When It Had To Airlift 67 Tons Of Its Gold For A Loan

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India Faces Its Worst Economic Crisis Since 1991 When It Had To Airlift 67 Tons Of Its Gold For A Loan

The RBI cut the amount local companies can invest overseas without seeking approval to 100 percent of their net worth, from 400 percent, according to a statement on Aug. 14. Residents can remit $75,000 a year versus the previous limit of $200,000.

The authority said banks accepting deposits after Aug. 24 from Indians living abroad need no longer keep 4 percent of the funds in cash and invest 23 percent in government-approved securities.

India also boosted import duties on bullion on Aug. 13 and banned inward shipments of gold in the form of coins and medallions to reduce the trade deficit. In a briefing in New Delhi on Aug. 14, Mayaram said imported gold must be stored in government-mandated warehouses.

It didn't do any good. Driven by expectations of impending exit from QE3 in the US, the rupee punched through 62 this morning, hitting a new all-time low.

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