Subbarao says more rate cuts if CAD, inflation go down
In the policy statement, the RBI nudged banks to grant more credit to the productive sectors on reservations from the small and medium enterprises and agriculture sectors, who are not given credit, he said.
Deputy Governor K C Chakrabarty said the large amount of restructuring, being witnessed by some banks, was a matter of concern but justified a cautious use of the instrument by lenders given the difficult economic climate.
On new bank licences, Subbarao said, "We are in the final lap", but declined to give any specific details.
"We consulted the government...They have made certain points to which we have responded and I don't know how many iterations it might go through but now we are awaiting the government's response to that. Both the government and Reserve Bank will want to launch this as soon as possible," he said.
Be the first to comment.