The important among the many unconventional measures taken by the Reserve Bank of India are a rupee-dollar swap facility for Indian banks to give them comfort in managing their short-term foreign funding requirements, an exclusive refinance window as also a special purpose vehicle for supporting non-banking financial companies, and expanding the lendable resources available to apex finance institutions for refinancing credit extended to small industries, housing and exports.
Long term stability is always superior to unsustainable short term gains. We try as much as we can to tell the public why we do the things we do and I am pleased to say that our policies appear to be taking effect. Foreign reserves are holding up well.