As of 31 August 1999, all Indian commercial banks are Y2K compliant, according to the Reserve Bank of India. Three financial institutions, two primary and satellite dealers, ten state finance corporations, six state industries development corporations, and around 175 primary co-operative banks are yet to be Y2K compliant. It touched an intra-day low of 43.60 before closing at 43.59, two paise below the close on 28 September 1999.
Sources say that the rupee was under pressure mainly because of banks covering gold imports.
There were also some outward remittances by diamond traders. Normally, there is also a month-end demand for dollars from companies. The forward premium has also moved up, indicating a further fall in the value of the rupee in the future. Lending by the SBI declined Rs.965 crore, Canara Bank Rs.464 crore, and ANZ Rs.558 crore. The agreement was part of the power policy of the government.