FM to meet RBI board to discuss borrowing programme

Finance Minister Pranab Mukherjee will address the Central Board of Directors of the Reserve Bank of India (RBI) on July 11 and expected to discuss the government's borrowing programme and other issues.

The Finance Minister is likely to discuss the macro economic picture as well as the interest rates in his post-Budget customary meeting with the Central Board of Directors.

At the same time, Mukherjee is also expected to discuss ways and means of facilitating the government's large borrowing programme.

Meanwhile, RBI has said it would ensure adequate credit flow to the productive sectors and manage the nearly Rs 4 lakh crore government borrowing programme smoothly.

"The RBI will ensure that the needs of the productive credit will be met... We are reviewing the situation and will use available instruments to conduct the borrowing programme in a non-disruptive manner," RBI Deputy Governor Shymala Gopinath had said yesterday.

The Finance Ministry and the RBI top brass is scheduled to meet on July 17 to take a view on the borrowing programme. This was disclosed by Finance Secretary Ashok Chawla earlier during the day.