happier if we had the kind of CAD we have without significant curbs on anything, including gold."
"We should aim to have a (lower) CAD without any distortions, that is what we will be working for," Raghuram Rajan said.
Later talking to analysts, the RBI chief, however, maintained time is not ripe to lift the existing curbs on gold imports. "At this point, it will be premature to withdraw these restrictions for a variety of reasons."
Rajan said the recent rise in India's forex reserves, which stood at around USD 295 billion as of December 6, is the result of two concessional swap windows the central bank had opened between September 4 and November 30.
RBI has no plans to buy dollars directly from the market, he said. "We are not targeting an exchange rate and, therefore, not going into the market and buying reserves at this point to increase the foreign exchange reserves."
State-run oil marketing companies have about USD 7 billion in pending settlements after they availed of the central bank's special swap window to meet their dollar needs.
OMC had swapped USD 12 billion from the separate oil window which was opened from August 28 to the first week of December.