New Delhi, June 5 -- Reserve Bank of India (RBI) Governor Sanjay Malhotra on Friday said the central bank remains vigilant against excessive volatility in the rupee and will intervene whenever required, while welcoming the government's move to exempt foreign investors from capital gains tax on government securities, saying it will strengthen India's external position.

Responding to an ANI question during the post-Monetary Policy Committee (MPC) press conference, Malhotra said the tax relief for foreign institutional investors (FIIs) investing in government securities was a "positive move."

"It will further strengthen our balance of payments, and so it's a welcome move," the RBI Governor said.

On concerns over speculation in the currenc...