The International Monetary Fund has reclassified India's exchange-rate regime, two years after the Washington-based lender suggested the country's central bank was intervening too heavily in the currency market.

The IMF labeled the country's de facto currency regime as "crawl-like arrangement," marking a change from the previous "stabilized" classification, the agency said in its annual country report for India released Wednesday.

A crawling peg involves small, gradual adjustments to a currency to reflect inflation gaps between a country and its trading partner, according to an IMF publication.

India's central bank "intervenes frequently" with the stated objective of curbing "excessive volatility," the IMF said in the so-called country's Article IV.

The timing of IMF's assessment coinc

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