12 min read.Updated: 03 Dec 2014, 10:29 AM ISTIra Dugal
RBI governor adds that the central bank looking at ways to give banks more leeway to convert loans into equity at time of loan restructuring
Mumbai: The government is comfortable with the Reserve Bank of India’s (RBI’s) suggested target of anchoring inflation at 4% in the medium term, within a band of 2%, said RBI governor Raghuram Rajan in a post-policy interaction with print media journalists. Rajan acknowledged that while some transmission of easier liquidity conditions has taken place in the markets, banks are still to bring down lending rates. Competitive pressure will goad banks to lower rates, he said. Rajan added RBI is looking at ways to give banks more leeway to convert loans into equity at the time of loan restructuring. Edited excerpts:
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