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RBI will respond to market demand if needed: Subbarao

Jammu(PTI): The Reserve Bank will respond appropriately to the market demands, if needed, Governor D Subbarao said on Wednesday.

“I cannot really comment on it (general inflation)… if we find that markets needs response, we will give a response … but I cannot really speculate on the fiscal movements outside the schedule,” he said.

RBI Governor said, “But we are watching all the figures, we are watching the developments, sometimes we will take action whenever it is necessary”. He was replying to the question of general inflation in the country due to which markets have become jittery.

He was speaking to reporters on the sidelines of an outreach programme organised in Samba district’s Surara village. On the question about central bank’s next policy review, he said, “I cannot say. it is our policy on April 17— it would be decided then”.
Financial inclusion

He further said “This campaign for the financial inclusion is a shake campaign— this is done by the public sector banks— private sector banks and foreign banks soon”.

“So the idea is that every bank must participate— all the banks are doing this— how they do this— we left it to them”, he said adding “there are various banks to prepare the financial inclusion plans which are discussed and approved in the boards and then are recommended”. One is to talk people and understand their problems and understand their hopes and expectations— second is to tell them what RBI is doing— just as I tried to tell them right now, so that they know what they expect of RBI, he said. The RBI, on Wednesday, said that 70,000 villages in the country have been identified for access to banking.

“As per the policy determined by the Finance Minister, every village across the country with a population over 2,000 should have access to banks”, Subbarao told reporters.

“So, since it is not possible or expensive to open branch in all 70,000 villages — we are covering some of them to banking corresponding model and some through other models,” he said. “But we have also said that every bank — every year —25 per cent new branches they open must be in villagers less than the population of 10,000”. “This is collective effort of Central government, banks to provide banking facilities to low income house hold groups in the country”, he said.

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