India’s Central Bank to Continue Reforms

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Sept. 12 – India’s Central Bank governor assured that the bank will continue to work on implementing financial sector reforms.

“There is a concern in some quarters that the crisis may have dented our enthusiasm for financial sector reforms. I believe that concern is misplaced. We will not slow down on reforms, but will surely rework the road map to reflect the lessons of the crisis,” Dr. Subbarao told The Hindu during the FICCI-IBA annual conference on Global Banking: Paradigm Shift.

India is hoping that financial reforms will lift the living conditions of its poor rural areas, improve education, medical care and infrastructure. According to estimates, the country will need US$100billion a year in the coming decade to maintain steady growth and infrastructure development.

Dr. Subbarao said that the Reserve Bank will need to retool itself to safeguard financial stability. “The Reserve Bank is conscious of the need to pay increasing attention to financial stability and to improve our skills in this area. As a beginning in this direction, we have set up a multi-disciplinary Financial Stability Unit in the Reserve Bank and are planning to put out a regular Financial Stability Report,” Dr. Subbarao was quoted by The Hindu as saying.