India ready to tackle any spillover effects of fin crisis: RBI

WASHINGTON: Taking note of implications of the global financial turmoil in the international system, RBI Governor D Subbarao has said India "stands prepared" to counter any spillover effects of the crisis. His remarks came during a special emergency meeting of the Group of 20 countries (G-20), comprising industrial powers and emerging economies, to discuss ways to deal with the crisis.

While there will be impact of the crisis on the emerging markets including India, the country "stands prepared" to tackle it, Subbarao told the meeting called by the Group's Chair Brazil and US Treasury Secretary Henry Paulson.
Subbarao along with Secretary, Economic Affairs, Ashok Chawla participated in the extraordinary meeting of the G-20 at the Headquarters of the International Monetary Fund last evening.

The RBI Governor's address to the G-20 meet came a day after he said the central bank was geared to inject more liquidity into the country's financial system and that there was no cause for anxiety.

"Our banking system is stable and sound. There is no reason for any anxiety or uncertainty," he had said, pointing out that RBI has already taken action to inject liquidity into the system.

US President George W Bush also attended the session where he spoke briefly on the imperative of all nations to act in a concerted manner, according to a participant at the meeting of the G-20 Finance Ministers and Central Bank Governors chaired by Brazilian Finance Minister Guido Mantega.