RBI says 'in­fla­tion is al­ways a con­cern'

The Pak Banker - - Front Page -

NEW DELHI: The Re­serve Bank of In­dia (RBI) said on Thurs­day in­fla­tion is al­ways con­cern and hinted at tak­ing more steps to check it. "In­fla­tion is al­ways a con­cern," RBI Deputy Gover­nor K. C Chakrabarty said.

Asked if the RBI is ex­pected to take more mea­sures to cool down in­fla­tion, he said: "RBI has al­ready taken the mea­sure. "If the Re­serve Bank feels the mea­sure is not ad­e­quate, they will take more mea­sures."

On point­ing out that the RBI had ear­lier hinted at ' pause' vis-a-vis its mea­sure re­gard­ing in­fla­tion, Chakrabarty said: "Pause does not mean halt. You need to dis­tin­guish be­tween pause and halt. Pause is not a halt." Speak­ing to re­porters af­ter in­au­gu­rat­ing a ' Grameena Vikas Ken­dra' (branch­less bank­ing unit) of Cor­po­ra­tion Bank [ Get Quote ] at Mal­lo­halli vil­lage in Ban­ga­lore Ru­ral district, he also said he does not be­lieve liq­uid­ity is a prob­lem. "It's not a big prob­lem to­day," he said but added that 'there are some fric­tional, struc­tural is­sues'.

"And I think ev­ery­body is meet­ing their obli­ga­tion. When you say liq­uid­ity is a prob­lem, RBI has al­ready ini­ti­ated the mea­sure and as a re­sult, the sys­tem is ev­ery­day set­tling all the thing. There is noth­ing like set­tle­ment is not tak­ing place."

Speak­ing in the con­text of liq­uid­ity is­sue, he said banks should in­crease their de­posits and give bet­ter re­turns and 'lend a lit­tle bit less' and added: 'If there are fric­tional is­sues, concerned peo­ple will look into it'.

On the statu­tory liq­uid­ity ra­tio, Chakrabarty said if one saw it from the gen­eral re­form di­rec­tion, SLR should come down. "SLR will come down only when the govern­ment bor­row­ing will come down. Over­all trend is SLR should come down." -PB News

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