RBI has no exchange rate target for rupee: Subbarao

Chennai, July 4 (IANS) The Reserve Bank of India (RBI) does not have any target for rupee level but will use all the instruments it has to reduce volatility, Governor D. Subbarao said Thursday.

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.

Speaking to reporters here, Subbarao said the bank has no exchange rate target but would use all the instruments it has to reduce the Indian rupee's volatility.

The Indian rupee fell to over Rs.60 to the US dollar recently.

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 said while increasing non-performing assets (NPA) for the banks is a concern, all the banks are adequately capitalised.

On the issue of fraudulent financial schemes, he said it is the state government's responsibility to check such schemes while RBI officials will study as to why the villagers get attracted towards such schemes.

Agreeing that the counterfeit currency is a problem, the RBI governor asked the banks to identify and report, urged the public to surrender such notes.


Get stories like this on the Yahoo app and discover more every day.
Download it now.


  • No live matches are in progress.
    • Team flag for South Africa vs. Team flag for New ZealandNZSA
      2nd Test
      Sat, Aug 27, 2016
      Sat, Aug 27, 2016
      Centurion, South Africa
      New Zealand in South Afric...
    • Team flag for England vs. Team flag for PakistanPAKENG
      2nd ODI
      Sat, Aug 27, 2016
      Sat, Aug 27, 2016
      London, England
      Pakistan in England ODI Se...
    • Team flag for West Indies vs. Team flag for IndiaINDWI
      1st T20I
      Sat, Aug 27, 2016
      Sat, Aug 27, 2016
      Lauderhill, Florida, Usa
      India vs West Indies T20 S...