Reserve Bank of India (RBI) Governor D Subbarao informed reporters that the central bank does not have any target for rupee level but will use all the instruments it has to reduce volatility.
The Indian rupee depreciated against the dollar sharply to over Rs 60 recently.
He also said the bank’s monetary policy transmission is not agile as the commercial banks are reluctant to pass on the benefit of interest rate reduction to borrowers and not all the applicants for a banking licence will get one.
Queried about the applications for banking licence, Subbarao said there are no definite numbers as to the new players and not all applicants will get a licence.
He expressed confidence that all the banks are adequately capitalised despite the increasing non-performing assets (NPA) for the banks.
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