A deputy governor of the Reserve Bank of India (RBI) has said that the lower GDP growth in the economy is not due to the high interest rates.

KC Chakrabarty, deputy governor said, "High interest rates not the major reason for low growth." He also urged commercial banks to manage their non-performing assets and pointed that that aggressive lending might increase uncertainties.

He also pointed out that the infrastructure is not suffering due to lack of finance. He said that the inflation and growth rate are important concerns for the central bank but said that there is not close intervention in interest rate setting.

He pointed out that the central bank does not micro manage interest rates. The growth in the Indian economy has fallen and many blame the tight monetary policy besides global economic uncertainties as a major reason for the lower growth.

India's GDP growth has fallen to its lowest level in 9 years to 5.3 per cent for the fourth quarter of the financial year till March 2012. The GDP growth for the same quarter of 2010-11 was 9.2 per cent, showed the latest data announced by the company.

Meanwhile, union Finance minister Pranab Mukherjee has said that the government is aiming to control the fiscal deficit to 2 per cent of the national GDP.