TARGETTING INFLATION-Govt to allow more private banks

TARGETTING INFLATION-Govt to allow more private banks 

The Governor of Reserve Bank of India Mr.Rajan will explain to the new Government the need to keep inflation under control.

Further keeping interest rates relatively high may be un avoidable to achieve that government officials famillar with RBI .RBI which is in the process of formulatingnew guidelines for bank licence was unlikely to allow corporate houses set up new banks in the near future .
RBI will talk to the next government on the inoprtance of inflation control , the inflation targer and the need to stay the course which the central bank is following.

RBI strenghthing its supervisory capabilities before issuing the new licences to the corporates.RBI hold a dialouge with the new government on a number of areas including the need oto present a credible budget.

The economy currently skating along at bottom but growth could pick up by at least one percentage point if measures were taken to unlock projects tied up in red tape.
we could see growth between 5.5% to 6% nudging the latter in the second half of hte current fiscal year.