RBI will respond to market demand, if needed: Subbarao

JAMMU: The Reserve Bank will respond appropriately to the market demands, if needed, Governor D Subbarao said on Tuesday.

" I cannot really comment on it (general inflation)... if we find that markets needs response, we will give a response ... but I cannot really speculate on the fiscal movements outside the schedule," he said.

RBI Governor further said, "but we are watching all the figures, we are watching the developments, sometimes we will take action whenever it is necessary". He was replying to the question of general inflation in the country due to which markets have become jittery.

He was speaking to reporters on the sidelines of an outreach programme organised in Samba district's Surara village, 45-km from here.

On the question about central bank's next policy review, he said, "I cannot say. it is our policy on April 17, it would be decided then". He further said "this campaign for the financial inclusion is a shake campaign, this is done by the public sector banks, private sector banks and foreign banks soon".

"So the idea is that every bank must participate, all the banks are doing this, how they do this, we left it to them", he said adding "there are various banks to prepare the financial inclusion plans which are discussed and approved in the boards and then are recommended".

RBI has only said that all the banks must fulfil certain targets and how they do it, we will have to check that, he said.

"This is an outreach programme. In this outreach programme ... the programmes that involves top management of RBI, Governor, Deputy Governor, Executive Directors, together with scheduled banks like Jammu & Kashmir Bank and others and district administration to go to village across the country, with two purposes," he said.

"One is to talk people and understand their problems and understand their hopes and expectations, second is to tell them what RBI is doing, just as I tried to tell them right now, so that they know what they expect of RBI", he said.