Rajan takes charge, announces multiple measures

Raghuram Rajan address after taking over as 23rd RBI governor

Raghuram Rajan today after taking over as 23rd RBI governor from Subbarao addressed the media saying, "This is not an easy time to take over as RBI governor; the economy does face challenges.

He said that the next monetary action statement will be made on September 20.

Raghuram Rajan also said that the RBI would form a panel, chaired by Bimal Jalan, to screen new banking licence applications. He said that the RBI was hopeful of handing out New Banking Licences by 2014.

He said, there is need to reduce investment by banks in govt securities in a calibrated way. He also added that they will push for more settlements in rupee. However, he also added that to enable more settlement in rupee, there was a need to open up markets all the more.

Rajan also added that the RBI would enhance limit to exporters by 50%.

Commenting on the current market conditions, Rajan added that the Indian economy remains fundamentally strong.

The new governor also added that National bill payment system will be introduced, which can be executed electronically. SMS-based funds transfer will also be introduced shortly, Rajan said.

Amongst the many measures that the new RBI governor annoucned he also said that the RBI will issue inflation index savings certificate.