RBI Hopes Early Revival Of Growth Story
RBI has assured business community that it would take all possible steps to maintain adequate money supply in the country's finance system. It urged banks to cut interest rates to ensure credit at cheap rates without compromising quality of credit. The bank said, in a recently released report, that financial health of country is sound due to active liquidity management by bank.
People should not worry about their deposits with banks due to strong fundamentals of economy. About 93% of deposit accounts and 61% of total assessable deposits were fully protected at March-end 2008. The bank hoped that India would soon emerge from the impact of global financial crisis and restore its growth story. However, it cautioned about major challenges ahead due to ever growing recessionary waves in international market.
The central bank expressed satisfaction over decreasing trend of inflation and hoped that it would soon come under the comfortable limits set by RBI.
RBI maintained in a report, titled 'Trends & Progress in Banking', "Once the global situation has stabilized and calm and confidence are restored, India will return to the high growth trajectory." The report throws light on various measures taken by apex bank to provide stability in the finance system besides discussing various economic stimulants and prospectus of Indian economy in coming times.