Reserve Bank to review growth and inflation figures in January

The Reserve Bank of India (RBI) today said it would 'revisit' the growth and inflation projection figures in January but side-stepped the question of its possible intervention to contain soaring prices.

"RBI's next policy review is scheduled towards end of January ... then we will revisit the numbers for growth and inflation projections," RBI governor D Subbarao told reporters here without elaborating.

Subbarao's statement on 'revisiting' the growth projection indicates possible upward revision in the light of considerable rise in GDP growth to 7.9% during the July-September quarter.

Subbarao, however, declined to give an idea on whether RBI would intervene to check rising prices of various articles, particularly food items.

"I cannot answer now whether RBI needs to intervene or when it will intervene. If we take a decision, we will let you all know about it," the RBI governor said after a meeting with Orissa chief minister Naveen Patnaik here.

Strongly advocating concrete measures to raise financial literacy among people, Subbarao said he told Patnaik that finance must be included both at school and college level curriculum.

Stating that RBI is trying to push it across the country, he said the Orissa chief minister agreed to take it forward in the state. Financial literacy is being pursued in Karnataka intensively on a pilot scale and based on that experience the
RBI would roll it out across the country, Subbarao said.

"We need to learn from experience ... but meanwhile we are encouraging all states to take this up," he said.

To a query, the RBI governor said financial inclusion and literacy is not restricted to opening an account in the bank. The account should be operative in the sense that the account holder must get a benefit, going beyond depositing.

The account holder must get benefits by way of over draft or credit facilities, he said, adding he had already asked the commercial banks to initiate necessary steps in this regard.

The RBI governor, who also discussed credit performance in Orissa with the chief minister, said there is a need to raise the credit-deposit ratio.

"Orissa has done well and there is scope for improvement," Subbarao said, adding that the state government should take necessary steps in this regard through talks with commercial banks.