Raghuram Rajan also said during a CNBC-TV 18 interview that the RBI does not want to declare victory on inflation yet, despite keeping interest rates on hold on Tuesday as widely expected.
The RBI would rethink its stance if there is a "substantial" change of inflation, up or down, Raghuram Rajan said.
RBI deputy says banks should cut HTM holdings
Reserve Bank of India Deputy Governor H.R. Khan said banks needed to bring down the ratio of debt under the held-to-maturity category to 23 percent to comply with a previous mandate asking lenders to do so by the end of March.
Also read: Raghuram Rajan's full speech