5/16/2014 Contingency plan ready to tackle volatility: Rajan - The Hindu

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PTI
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Published: May 16, 2014 00:05 IST | Updated: May 16, 2014 00:15 IST
Contingency plan ready to tackle volatility: Rajan
Kanwar Yogendra
Himachal Pradesh Chief Minister Virbhadra Singh (left) greets RBI Governor Raghuram Rajan at a meeting in Shimla on Thursday. PHOTO:
PTI
We have placed prudential contingency plans to infuse liquidity if needed
The Reserve Bank of India will take measures to minimise any excessive volatility in the rupee after the Lok Sabha
results are announced on Friday, Governor Raghuram Rajan said here on Thursday.
The Governor, while talking to the media persons after the RBI board meeting, also disclosed that a contingency plan
had been discussed with the Finance Ministry to deal with any stock market volatility after the election results were
declared. On the issue of privatising the public sector banks, Dr. Rajan said the report of the P J Nayak committee
was an outside attempt by an individual. Although having very valuable, respected and valid suggestions, the central
bank had no intentions to accept this. He also expressed concern over the prevailing rate of around 10 per cent NPAs
in private sector banks. He said it was an alarming number, and the RBI was not comfortable with this and it was
only the growth that could bring it back on track.
On his meeting with the State-level bankers committee, he said the hill State was largely a richer State with a higher
per capita income.
The State has a branch on every 3,009 people here. But the habitations were remote here and the weather was a
precarious problem which needed a mobile technology, he added.
PTI reports:
We assured the board that we are in discussions with the Finance Ministry and the Securities and Exchange Board of
India, and we have placed prudential contingency plans to infuse liquidity if needed. We hope that everything will go
normally tomorrow when the election results are announced, Dr. Rajan said.
Keywords: rupee value, RBI, Raghuram Rajan, Finance Ministry, stock market volatility, Sensex
5/16/2014 Contingency plan ready to tackle volatility: Rajan - The Hindu
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high, BSE, Nifty, election stocks rally, Lok Sabha Election results
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