RBI is optimistic on growth following the good monsoon forecast by India Meteorological Department. ?We have said 8%-plus (for growth). Let us first understand the forecasts at present… what will finally happen, at that time we will see. This all gives a more optimistic picture,? said RBI deputy governor KC Chakrabarty.

RBI has forecast inflation will ease to 5.5% by Mar 2011 from 9.9% witnessed in March.

?Monsoon is already factored into the inflation projection… but if the monsoon is really good, then it may further ease,? Chakravarty said on the sidelines of a banking technology event on Monday. The IMD has said rainfall this year is likely to be 98% of the long period average, signalling good rains.

When asked whether finance ministry was taking any moves to ban teaser rate loan schemes by state-owned banks, Chakrabarty said, ?I have no idea. They are the owner of the bank, they can apply this to the bank.? He reiterated RBI had not asked banks to refrain from offering teaser rate schemes, but had advised them to ensure transparency and non-discrimination in pricing. ?Banks should understand the risks involved and must also communicate this to their customers…,? he said.

On extension of provision cover for NPAs, Chakravarti said the RBI has not issued an extension to all banks to achieve 70% provision cover and would treat banks’ requirements on a case-to-case basis. ICICI Bank, State Bank of India have received RBI’s permission to achieve 70% provision cover by March 31 as against the earlier deadline of September 30. Market analysts have been expecting RBI to allow banks to achieve the provision cover norm by Mar 31.

On decline in credit card issuance, Chakrabarty said a more conservative and moderate approach by foreign and private banks in issuing credit cards maybe a reason behind decline in their issuance. ?Basically you have to verify foreign banks (data), their credit is not picking up. Maybe they have become more cautious or they are not issuing cards,? he said.