The Reserve Bank of India has set up a seven-member technical advisory group,
chaired by the deputy governor in charge of financial markets, to assess the
efficiency, liquidity and resilience of India’s foreign-exchange and government
bond markets. The move comes as the RBI has been intervening frequently to
support the rupee, which is among this year’s weakest Asian currencies. The
central bank has also tightened rules to curb speculation in currency
derivatives and is draining surplus liquidity to rein in inflation risks. The
panel will identify emerging policy and operational issues, implementation
challenges for RBI measures and any potential unintended market frictions.
