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RBI to continue to take action to prevent excessive volatility in rupee exchange rate: Sitharaman
Oct-14-2026

Finance Minister Nirmala Sitharaman has said the rupee has depreciated ‘significantly’ over the past year and a half, and the Reserve Bank of India (RBI) will continue to take action to prevent excessive volatility in the rupee exchange rate. She said domestic currency has reached a low against the US dollar mainly due to global uncertainties, despite India's strong macro-economic fundamentals with healthy foreign exchange reserves. She added that the regulator RBI is also taking efforts through its regulatory powers to ensure the domestic currency stays stable. 

On the potential rationalisation of the Securities Transaction Tax (STT) and long-term capital gains (LTCG) tax, the minister said the debate around STT and LTCG tax rationalisation is ‘healthy’, and she will ‘keenly’ hear these debates. She said ‘we are very close to the Budget, and the preparation for the Budget has started. It may not be the best time for me to say what I will or what I will not consider.’ She further said that the long-term capital gains tax is something on which a lot of people have been commenting, and the issue also came up during her conversation with investors in India and abroad. 

Talking about investment by the private sector, Sitharaman said, domestic private capital is flowing into India, while the country is also attracting investment from abroad. Investments are coming into sectors such as renewable energy, semiconductors and chip design, biosimilars, pharmaceuticals, generic drug manufacturing and aircraft maintenance, repair and overhaul (MRO) centres. She added that these are among the sectors that are attracting private capital, whether from companies expanding their core businesses or those entering new areas.
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