'Difficult to comment if 4.6% fiscal deficit target can be reached'

AGARTALA: Reserve Bank of India (RBI) Governor D Subbarao today said it is difficult to comment if the government can deliver on a 4.6 percent fiscal deficit target.

"It would be very difficult to attain the fiscal deficit target unless there is adjustment on expenditure or tax," he told a press conference here after the Board meeting.

About the inflation control measures the RBI Governor said, "8.6 per cent is very high which needs to be brought down. We would study it and the matter would be reviewed on June 17th next."

Stressing the need for financial literacy, Subbarao said, it would be launched in the entire north-eastern region to educate people about what facilities they could get from banks.

Subbarao said about 6 lakh villages having population of more than 2,000 have no access to the banks and the RBI would endeavour to bring those habitations under coverage of banks by March 2012.

To a question, he said that he was aware about circulation of fake currencies in the north-east and advised the banks to install machines in their branches to identify the fake currencies.

He also stressed the need for stringent police action against the racket of circulating fake currencies.

Subbarao said the RBI has decided to accept the Malegam Committee Report on micro-finance which recommended that any micro-finance organisation would provide loan amount of more than Rs.35000 to any party.