The tenth measure was introduced in parallel with the previous one. It concerns the same issue of currency valuation but approaches it from the perspective of foreign exchange reserves. There is no doubt that the rupee has strengthened since the crisis – the rupee exchange rate index moved from 100 in 2007 to 91.6 in December 2011, standing at 94.2 in September 2012.
With the new rules of Basel II, however, and in today’s market environment, capital soundness takes on an even more important role, and the banks have been invited to proceed to the necessary strengthening.