RBI open to regulatory changes, says Deputy Governor Khan
New Delhi : Reserve Bank is open to regulatory changes so as to give a boost to investment in infrastructure sector, its Deputy Governor H R Khan said today.
“We are open for regulatory changes as situation demand as nothing is cast in stone. We are sensitive to demand,” he said at India Investment Summit here.
RBI has announced several steps in the last few months including with regard to external commercial borrowings (ECBs).
The apex bank had relaxed ECB norms with fewer restrictions on end uses and allowed loans from sovereign wealth funds, pension funds and allowed loans from sovereign wealth funds, pension funds and insurers to attract more overseas fund.
On rupee volatility, he said, “On a specific rate, I can’t comment. Our approach is to avoid undue volatility.”
He, however, admitted that international environment will have impact on India and this has been highlighted in the policy statement.
“There will be rough patches which we will be able to ride over and we should see a phase where there is some sanity and stability because of our strong macros,” he said.
He further said RBI governor has been proposing coordinated action with regard to currencies.
“As far as currency is concerned, we are proposing a coordinated action,” he said.
The current international economic situation is such that emerging nations cannot be ignored, he said, adding, emerging countries account for 80-85 per cent of the population which has to be factored.
When emerging countries get affected the whole world gets affected, he added.
On deepening of corporate bond market he said: “There is one working group set up under FSDC which I am coordinating with ministry of finance. We have looked at few proposals. Some preliminary findings are with the government. I think they will take a view.”