Finance Minister P Chidambaram today said the steps announced by RBI today to curb investment by Indian companies abroad is not a "capital control" measure and the apex bank will revisit it at an appropriate time.
"These are, I believe, measures that are temporary and I am sure that RBI will revisit it at an appropriate time...So, this is not to be understood as capital control," Chidambaram told a news channel.
The Reserve Bank today reduced the limit for overseas direct investment (ODI) by domestic companies, other than oil PSUs, under automatic route from 400 per cent of the net worth to 100 per cent.
"I think the most point to make is that corporates are not being discouraged from assets acquiring abroad or companies acquiring abroad or invest abroad," he added.
He said the RBI has just limited the ODI from 400 per cent of the net worth to 100 per cent of net worth.
But if a corporate makes out a case that it requires more money to acquire an asset abroad or acquire a business abroad, the RBI will give approval, Chidambaram said.
