The World Bank is pondering the idea of providing India with a loan worth USD3.5 billion in its local rupee currency, forgoing use of the traditional dollar. Wary over the plunging American dollar and consistent fluctuations in the currency, the proposed set-up was discussed by World Bank country director Isabel Guerrero and Maharashtra state government officials. In addition to seeking financial help for various health, water, energy and irrigation projects the Indian state government of Maharashtra needs ample assistance in its USD2.5 billion Mumbai Metro Project, and would like to have an arrangement that would prevent significant monetary changes to the funding brought about by fluctuating exchange rates. The dollar has fallen to 45 against the rupee, from 40 just months ago.
Source: India seeks World Bank rupee loan (BBC)
