The Reserve Bank of India Governor Duvvuri Subbarao has recently said that the new global capital rules for the banking industry will be coming at an expense of the growth of the Indian market.

Subbarrao also said that the country needs to fund its $1 Trillion in infrastructure and bring more people in the financial sector of the economy. It is to be mentioned here that Subbarrao mentioned a rise in the Interest rates for the fifth time this year and is also facing a tough time in controlling the surging prices in the country.

However, the Governor has recently said that the inflation will determine the future course of monetary policy action.

Moreover, he also mentioned here that basics of the Basel III norms are to ensure a less frequent crisis along with a less severe crisis in the country.

Going by the details of the Basel III norms, it will make it costly for the banks to lend money and is expected to bring more stability into the system. But where do the central bank will strike the balance is however the toughest question that it is facing till date.