The Central Board of Directors of the Reserve Bank of India met today at Shimla. Dr. Raghuram Rajan, Governor, Reserve Bank of India chaired the 545th meeting of Central Board of Directors. Directors, Dr. Anil Kakodkar, Shri Kiran Karnik, Dr. Nachiket Mor, Shri Y.H. Malegam, Prof. Dipankar Gupta, Shri G. M. Rao, Dr. Indira Rajaraman and Prof. Damodar Acharya also attended the meeting. Government nominee director on the Central Board Shri G. S. Sandhu, Secretary, Department of Financial Services too attended the meeting. Deputy Governors Dr. Urjit R. Patel and Shri R. Gandhi were also present. The Board reviewed the functioning of the Reserve Bank as well as the current economic situation and global and domestic challenges and policy responses.
Various issues were discussed during the meeting.RBI Governor Raghuram G Rajan said while addressing media persons in Shimla RBI, along with the finance ministry and market regulators, would be keeping a close watch on economic developments. He said if needed, liquidity flow in the market would be ensured as well.
He said that for the last few days, the market has been very volatile. Commenting on falling rupee, Rajan said that RBI does not focus on level of rupee but tries to minimize undue volatility. On the issue of inflation, he said that food prices were still a cause of concern. He said that by the end of the year, RBI would meet consumer inflation target of 8% and by next year, efforts would be made to meet inflation target of 6%.
The Governor later met the Chief Minister of Himachal Pradesh Shri Virbhadra Singh and the State Level Bankers Committee and discussed issues of mutual interest with them. Dr. Rajan appreciated the developmental efforts of the state and said that Himachal Pradesh with approximately 3900 persons per branch had a better access ratio than most states. There were, however, issues in reaching remote and difficult areas where banking services had still not reached. The availability of technology solutions, especially mobile technology and more effective use of banking correspondents would help further financial inclusion, the Governor stated.
The Governor also interacted with students and faculty of Himachal Pradesh University.
Various issues were discussed during the meeting.RBI Governor Raghuram G Rajan said while addressing media persons in Shimla RBI, along with the finance ministry and market regulators, would be keeping a close watch on economic developments. He said if needed, liquidity flow in the market would be ensured as well.
He said that for the last few days, the market has been very volatile. Commenting on falling rupee, Rajan said that RBI does not focus on level of rupee but tries to minimize undue volatility. On the issue of inflation, he said that food prices were still a cause of concern. He said that by the end of the year, RBI would meet consumer inflation target of 8% and by next year, efforts would be made to meet inflation target of 6%.
The Governor later met the Chief Minister of Himachal Pradesh Shri Virbhadra Singh and the State Level Bankers Committee and discussed issues of mutual interest with them. Dr. Rajan appreciated the developmental efforts of the state and said that Himachal Pradesh with approximately 3900 persons per branch had a better access ratio than most states. There were, however, issues in reaching remote and difficult areas where banking services had still not reached. The availability of technology solutions, especially mobile technology and more effective use of banking correspondents would help further financial inclusion, the Governor stated.
The Governor also interacted with students and faculty of Himachal Pradesh University.
