* At 12:55 p.m., the partially convertible rupee
* One-month non-deliverable forward contracts PNDF were quoting at 49.52/62 per dollar, weaker than the onshore spot rate, providing a good arbitrage opportunity to banks.
* Indian shares fell more than 2.5 percent on Tuesday, with banks among major losers after a higher-than-expected government borrowing plan was seen as denting their outlook in the near term. See [.BO].
* A stronger dollar overseas also dampened sentiment for the rupee.