RBI does not look at any single data for policy: Deputy Governor SS Mundra

MUMBAI: Reserve Bank of India (RBI) does not look at any single data point (while determining monetary policy) deputy governor SS Mundra said on the sidelines of a function in Mumbai.

When asked whether the latest important international data like the US jobless claims which released earlier this week, will have any bearing on the RBI's interest rate setting meeting on Tuesday, Mundra said a single data point on any given day does not guide the central bank.

Data released earlier this week said that a fewer number of workers filed for jobless benefits in the US compared to the previous weeks, increasing expectations that the US Federal Reserve will hike its target funds rate for the first time since 2008.

Jobless claims dropped by 12,000 to 260,000 in the week ended November 21, a level near the 256,000 seen about 42 years ago.

Mundra who was speaking on the sidelines of a conference by a industry lobby group said industry groups should push small and medium enterprises to get on the soon to be launched electronics Trade Receivables Discounting System (TReDS).

"The trade platform will be an efficient, transparent and real time system to settle receivables," he said. On Tuesday RBI granted an in principle nod for three firms to start a new TReDS.

Mundra said it is important that small and medium enterprises should not hide their problems with banks. "Timely repayment is important and if they do not share their problems with bankers, they will be aggravated," he said while dismissing calls for changes in NPA regulations because frequent changes in regulations would diminish the credibility of regulations.