Chennai: India will see only limited impact of Greece crisis since it has limited direct exposure to Greece in both financial and trade terms, said RBI governor Raghuram Rajan. He, however, said that the indirect exposure like its impact on exchange rates, how Euro will react to the issue and any untoward incident in Greece will impact the sentiment of global investors that in turn will affect us.
Speaking to repor-ters after the RBI’s board meeting here on Thursday, Dr Rajan said that the Indian economy is recovering and the capital investments are picking up.
“The government was trying to put stalled projects back on track and the monsoon, thus far, was above normal. Exports were relatively weak but it was seen across the globe.” Dr Rajan also announced that the central bank would put in place a regulatory framework to allow a new kind of NBFC, which could act as an account aggregator to enable anyone to see all his accounts across financial institutions.
The government and RBI are discus-sing recapitalisation of state-owned banks, thus giving them a buffer, he said, adding that the banks should have enough capital to clean up their balance sheet.
Commenting on bad debts, Dr Rajan said that RBI is wor-king with the banks to ensure that they recognise the problems early by creating a database.
On foreign investments, he said that FII cap has not been changed, however, we are committed to a steady expansion in the absolute value of FII participation ensuring that we don’t go over board and rely only on FII for financing the government or corporate bond market.
The board also discussed about resurrecting FIAC to take the financial inclusion agenda forward. It will have members from all financial sector regulators and will also invite nominations from the government, some self-regulatory organisatio-ns, research organisations, UIDAI, NPCI and such other stakeholders.
