New Delhi: Finance Minister Pranab Mukherjee is expected to announce measures to boost the economy and shore up the falling rupee. Government sources have said that the reserve Bank of India (RBI) is considering hiking the corporate bond FII limit to over $ 30 billion.
The RBI is also considering a cut in withholding tax on corporate bonds. However, no cut in excise is being considered yet, according to sources.
Sources say any cut in excise if at all will be only on petroleum.
The government is also considering to issue bonds for non-resident Indians through state-run banks at around 7-9 per cent interest rate, a source close to the development said, to help bolster capital inflows and stem a slide in the rupee.
Meanwhile, markets opened on a positive note ahead of the government's measures on expectations of reforms by the government after the Presidential elections.
The rupee, too, recovered from a record low of 57 per dollar. It opened at 56.10 against the dollar in early trade on Monday.