Home / News / India /  'Yet to take a positive decision': RBI on increasing overseas investment limits for MFs

Reserve Bank of India Governor Shaktikanta Das said that currently there is no proposal to increase the overseas investment limits for domestic mutual funds.

RBI Governor Das said that there have been requests from mutual funds and other market players for relaxations of the limits.

"We have examined that. But we have not taken a positive decision on it yet. There is no proposal to increase the limits at the moment," Das said.

Deputy Governor T Rabi Sankar said the issue had come up a year ago and it was decided to maintain the status quo then.

An overall industry-level limit of $7 billion for mutual funds. The RBI regulates the fund inflows and outflows into the country.  

Capital markets regulator Sebi had in June last year permitted mutual funds to again invest in foreign stocks within the aggregate mandated limit of $7 billion after a correction in stocks.

In January 2022, Sebi asked mutual fund houses to stop taking fresh subscriptions in schemes investing in overseas stocks. The directive to stop subscriptions was mainly on account of the mutual fund industry crossing the mandated limit of $7 billion for overseas investments.

The Reserve Bank of India on Wednesday announced a hike in repo rate for the sixth time in a row, by 25 bps to 6.50% with immediate effect . In its December monetary policy review, the central bank had raised the key benchmark interest rate by 35 basis points (bps).

RBI puts GDP growth estimates at 6.4% for 2023-24 and it estimates retail inflation to trend lower at 6.5% for FY23 from 6.7%; and to be 5.3% for next fiscal

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