Financial reforms not derailed but recalibrated: Subbarao

Setting at rest fears that the global crisis could derail India's financial sector reforms, Reserve Bank of India (RBI) Governor D Subbarao today said the roadmap is being recalibrated but there was no slowing down the process.

"There have been speculations that India may slow down financial sector reforms (in the face of crisis)...We are not slowing down reforms...I believe that this is a mistaken view...We are recalibrating the roadmap for reforms," Subbarao said at an apex bank function here.

With the onset of the financial turmoil and its spillover impact in India, the country had taken a cautious approach on financial sector reforms like the entry of foreign banks.

Noting that the crisis has thrown up a large number of questions on financial sector reforms, Subbarao said effective financial intermediation has played a key role to support India's high growth.

The apex bank adopted an accommodative stance in its quarterly review of monetary policy last month to push growth by leaving its key rates untouched.