RBI to take every necessary step to stem rupee fall, says HR Khan

Amidst rupee touching new life- time lows, Deputy Governor HR Khan today said the Reserve Bank will take every step required to stem the plunge of the domestic currency.

"We are watching and monitoring the situation.All steps that need to be taken will be taken," Khan told reporters on the sidelines of an event organised by the National Payments Corporation (NPCI) here.

He also said the central bank is in touch with the Finance Ministry on the issue.

The rupee had lost more than 8% since the first week of May, after the US Fed indicated it may start scaling back its monetary stimulus programme later this year.

It closed at a life-time low figure of Rs 59.57 yesterday after touching 59.985 intra-day on the back of dollar demand from importers along with pulling out of FII money.

When asked on the proposal to float NRI bonds to arrest the fall of rupee, Khan said the central bank would take all short-term, medium-term and long-term measures when appropriate.

Meanwhile, addressing the gathering on payment system, Khan said the central bank is considering allowing participation of non-banking players in points of sale terminals as it had allowed in case of white-label ATMs.

Khan also said the usage of cash has increased despite the higher use of ATMs and called for more use of e-payment systems to promote less cash transactions.

Khan also emphasised on a sound protection system in all form of payment system to check incidents of fraud in this mode.