<h1>Capital inflow measures seek to stabilize foreign exchange and restore investor confidence after prior portfolio outflows.</h1> In response to substantial foreign portfolio outflows after indications of tapering, the Government, with the Reserve Bank and SEBI, introduced measures to augment capital inflows: liberalised FDI norms for select sectors; a swap window for banks to swap fresh FCNR(B) dollar funds with the Reserve Bank; an increase in banks' overseas borrowing limit to 100% of unimpaired Tier I capital with swap option; and permission to avail ECBs from foreign equity holders under the approval route for general corporate purposes. These steps coincided with currency appreciation and rebuilding of foreign exchange reserves, and a lower projected current account deficit reduces expected tapering impact.