Today, our reserves are high and exchange rate movements are, by and large, orderly. Now, suppose there is an event which creates external uncertainty, as for example, what actually happened at the time of the Kargil or the imposition of sanctions after Pokhran, or the oil crises earlier.
Indeed, low interest rates have made it attractive to refinance mortgages to reduce mortgage payments, extract some home equity buildup, and pay down more expensive forms of consumer credit.