# RBI Ex-Gov Subbarao: Rupee Correction Fails Fundamentals

> Former RBI governor says forcing rupee to artificial levels ignores economic reality.
- Title: RBI Ex-Gov Subbarao: Rupee Correction Fails Fundamentals
- Summary: Former RBI governor says forcing rupee to artificial levels ignores economic reality. RBI should let rupee adjust naturally rather than artificially…
- Keywords: rbi, subbarao, rupee, fundamentals, exchange rate, currency market, tax reforms, Ex-Gov, Correction, Fails, The Economic Times
- Source: The Economic Times — https://economictimes.indiatimes.com/industry/banking/finance/correcting-rupee-against-fundamentals-ultimately-futile-says-rbis-ex-guv-subbarao/articleshow/135034910.cms
- Author: Dilasha Seth
- Published: 2026-10-18T19:45:00+00:00
- Read time: 1 min
- Topics: rbi, subbarao, rupee, fundamentals, exchange rate, currency market, tax reforms
## RBI Ex-Gov Subbarao
Former RBI governor D Subbarao says correcting rupee to levels that ignore economic fundamentals will be futile through costly short-term measures.

> The rbi should allow the rupee to find its level while managing the trajectory, rather than trying to control it at a particular level
## Rupee Recovery Measures
RBI introduced special usd window for oil marketing companies, foreign exchange risk reserve, tighter forex-derivative restrictions, omo sale and higher crr requirements.
## Rupee Depreciation Causes
Capital outflows and tax regulation unpredictability are deeper structural causes of rupee depreciation than oil prices and import bills.
## Tax Reforms Needed
Subbarao says tax reforms are essential to attract foreign investment by improving predictability of india's regulatory environment.
## Key takeaway

RBI should let rupee adjust naturally rather than artificially correcting it against economic fundamentals.