With falling rupee, rising interest costs ring alarm bells for India Inc

Many large companies and public sector banks and financial institutions are tapping the international markets to take advantage of the cheaper funds

The chief financial officers of India Inc are worried that the continuous fall in the rupee against the dollar might stoke inflation, which would nudge the Reserve Bank of India (RBI) to increase interest rates -- increasing the cost of funds for corporates.     

"In the past, the RBI has raised interest rates to check volatility. The sudden fall in the rupee's value is alarming and the RBI will not hesitate to raise rates so as to stop the fall in the Indian currency's value," said Prabal Banerjee, president of Bajaj group. "The cost of funds for corporates in